Remedy for Success

TireHub expands Goodyear focuses Frasier Tire opens 3 to Florida, opens 3 on mobility 4 fth location in logistics center with collaboration South Carolina

June 10, 2019 $79 per year, $4 per copy www.tirebusiness.com GM targets Michelin airless tire for fitment By Bruce Davis [email protected] MONTREAL General Motors Co. has agreed to accompany Michelin Group on the next leg of its journey to bring a viable extended mobility solution to market. Michelin, in partnership with GM, has taken development of its decade-plus old Tweel maintenance-free, non-pneumatic tire/wheel system to the next level with the “Uptis” prototype that the companies said could be market ready as an original equipment tment by 2024. Michelin and GM presented the next-generation airless tire/wheel concept during the Movin’On Summit for

Tire Business photo by Don Detore sustainable mobility, held in Montreal Michael J. Brown (far right) explains the grape-growing process to dealers during an activity at the Robert June 4-6. Tire Business photo by Bruce Davis Mondavi Winery in Napa, Calif. The dealers were attending a Nexen Tire dealer appreciation event. Uptis — Unique Punctureproof Steve Kiefer, GM senior vice presi- Tire System — is based on the fun- dent, global purchasing and supply damentals of Michelin’s Tweel tire/ chain, shares the advantages to Uptis wheel product, introduced at the 2005 at Movin’On in Montreal. Detroit Auto Show, according to Eric production process and architecture Remedy for success Vinesse, Michelin executive vice of the Uptis spoke design is complete- Nexen has ambitious goals as it continues to increase market share president, research and development. ly new, however, Mr. Vinesse said. Like the Tweel, the Uptis uses res- The spokes are molded onto an alu- By Don Detore growth in sales — a trend that has continued in the in-reinforced berglass spokes as minum cylinder and the rubber tread is [email protected] rst quarter of 2019 — and has set a goal to secure load-bearing elements. The materials, SEE MICHELIN , PAGE 26 NAPA, Calif. 3.25 percent market share in the U.S. by 2020. The As mid-year approaches and the weather across tire maker has its sights set on cracking the Top 10 North America heats up, the cold and u season in global sales by 2025. GOP, industry groups oppose seems to be a eeting memory. In Tire Business’ 2018 Global Tire Report, Nex- It’s much like the days when Nexen Tire America en Tire Corp. ranked 20th in total sales, at $1.65 Inc. was prone to any industry or customer malady. billion. Hangzhou, China-based Zhongce Rubber tariffs on goods from Mexico John Hagan, executive vice president of the Seoul, Group Co. Ltd. held the 10th position with sales of By Miles Moore South Korea-based tire maker, used an appropriate $3.62 billion, more than double Nexen’s. [email protected] analogy to describe the company’s immune system Mr. Hagan shared that vision with 26 dealers — WASHINGTON now in place to ght off industry in rmities. including two dozen direct tire dealers and two as- Senate Republicans are rebelling Today, the emphasis is on a balanced distribution sociate dealers — and their companions — during against President Trump’s announce- network. a ve-day dealer appreciation event, held in April in ment that he would levy tariffs on all “We had some large customers in the past, that if California’s Napa Valley. goods imported from Mexico, re ecting they got a cold, we got a u,” Mr. Hagan said during He hoped the dealers left wine country not only the general shock and dismay expressed an interview with Tire Business. “Now if they get a with a greater af nity for ne wines — it seems as by U.S. business interests at the news. u, we get a u. if every parcel of land in the valley not part of a According to various news reports, “My goal is, if they get a u, we get a cold. Or we winery or business grows some variety of grapes Senate GOP leaders threatened White get the snif es.” — but also with a clear understanding of where the House of cials with a veto-proof vote to demned the tariffs almost as soon as Nexen, he said, continues to post double-digit SEE NEXEN , PAGE 23 overturn the tariffs if the president goes President Trump announced them via ahead with them as planned June 10. Twitter May 30. Tire Business Special Report “There is not much support for it “Trade policy and border security in my conference for tariffs,” Senate are separate issues,” Sen. Grassley said Mid-YearTireReport Q&As with tire Majority Leader Mitch McConnell, in a statement on his website. “This is 12-22 R-Ky., reportedly said. Sen. McCo- a misuse of presidential tariff authority Nokian intensi es Bridgestone puts industry experts nnell also urged the White House and counter to congressional intent. 10 building brand 12 emphasis on to hold off on tariffs until President “Following through on this threat Trump had a chance to hear the con- would seriously jeopardize passage in U.S., Canada Firestone brand cerns of members of Congress. of USMCA (the U.S.-Mexico-Cana- Senate Finance Committee Chair- da Agreement), a central campaign ©Entire contents copyright 2019 by Crain Communications Inc. All rights reserved. man Charles Grassley, R-Iowa, con- SEE TARIFFS , PAGE 26

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Visit us on the web at www.tirebusiness.com TIRE BUSINESS, June 10, 2019 • 3 IndustryNews Mother’s Day surprise TireHub opens facility RNR gives cars, tires to deserving moms in Fla., expands reach ATLANTA “Fort Myers is a perfect t,” Mr. TAMPA, Fla. giveaway for other deserv- TireHub L.L.C. has expand- Gibbons said. “We have custom- RNR Tire Express & ing single mothers. ed into a new market for the rst ers there that have been previously Custom Wheels expand- In 2017, RNR Tire Ex- time in its brief history, opening a served through TLCs in neighboring ed its annual Mother’s press Rental Concepts TireHub Logistics Center (TLC) in cities, and this expansion allows us to Day car and tire give- promoted the contest to Fort Myers, Fla. meet their needs with more away to honor all types give away one new car in The 50,000-sq.-ft. facil- frequent deliveries and ex- of deserving mothers its market. ity is the wholesale distrib- ceptional personalized ser- nominated in a national The franchisee’s 2019 utor’s 69th logistics center vice. We are tremendously contest. Mother’s Day New Car in the U.S. excited to have an of cial Customers across Giveaway expanded to Peter Gibbons, CEO of presence in the city.” the nation had the op- giving away two new TireHub, the joint venture TireHub said it already portunity to nominate a Buick Encores in draw- between Bridgestone Amer- has relocated centers in “superhero mom” and ings involving all moth- icas Inc. and Goodyear, said several existing cities to from thousands of en- ers, not just single moms. that expanding into a new meet product demand in tries, RNR Tire Express This year, the contest market within the rst year Gibbons each respective area. The RNR Tire Express & Custom Wheels photo selected three mothers David Harrison (left), a partner in Rental Concepts, an RNR had two different spon- of business “is a milestone wholesale distributor said to receive new cars. The franchise group, poses with Tammy Niederhelman of Carl sors — Yokohama Tire that we are incredibly proud of.” it plans to assess opportunities con- dealership chain also gave Junction, Mo., who is receiving her new car. Corp. sponsored the The facility, which is being leased, tinually to determine “where it can 25 sets of tires to mothers giveaway for RNR Tire has seven full-time employees, and better serve customers based on who were runners-up in the contest. Express Rental Concepts North stores, while Nexen Tire according to a spokesperson, Tire- the needs of each market, which RNR recognized the three mothers at surprise reveal America Inc. sponsored the giveaway for RNR Tire Ex- Hub has plans to hire a few more. includes new geographies if that’s events at their local stores where nominating families press Rental Concepts South stores. Both cars were tted TireHub launched in July 2018. where it makes sense.” presented their moms with a free vehicle. with a new set of the sponsor’s brand tires. The Fort Myers location, like all lo- Sylvia Wilks, vice president of op- The Mother’s Day car giveaway initiative was started Meanwhile the Tampa-based RNR corporate of ce cations, will have access to the full erations at TireHub, said “everything by David Harrison, a partner in Rental Concepts, an RNR sponsored a third car giveaway. passenger and light truck tire product we do to grow our business is a tes- franchise group with stores in Arkansas, Louisiana, Tex- The donation of 25 sets of tires were sponsored by lines from the Goodyear and Bridge- tament to the consistent demand for as, Oklahoma and Missouri, in honor of his own mother. Yokohoma and Nexen. stone companies, including Bridge- premium Goodyear and Bridgestone Mr. Harrison was raised by a single mother who worked More than 5,000 mothers were nominated this year and stone, Goodyear, Dunlop, Firestone, tires. Our priority is to provide deal- to provide for her four children. When Mr. Harrison reached the nalists were reviewed by a panel of judges. The win- Fuzion, Kelly and LeMans, as well ers and retailers what they need, when a point in his life where he could repay his mother, he bought ners of the cars were: as Toyo and select Goodyear and and where they need it. Opening Fort her a new car. Her gratitude inspired him to launch a car SEE RNR, PAGE 24 Kelly commercial tires. Myers is a great example of that.” eBay adds 3,500 shops Goodyear strikes another deal to tire installer network Tire maker dives deeper into eet mobility services Crain’s Cleveland Business For Goodyear, the relationship represents more than SAN JOSE, Calif. to connect with millions of eBay au- AKRON a sale of its predictive eet technology; it also gives Online auto parts and accessories tomotive shoppers, offering increased Goodyear is teaming up with Prazo Inc., an electric the company a larger laboratory to continue develop- retailer eBay Motors is expanding its convenience and selection when it car subscription company doing business as “Borrow,” ing that and similar products. tire installer network to include Fire- comes to servicing their vehicle.” to help it forecast and schedule needed tire mainte- The company said its Goodyear’s Innovation Lab in stone Complete Auto Care/Tires Plus eBay Motors customers can add pro- nance and replacement on a timely basis. San Francisco will test its technology while servicing and TBC Corp.’s NTB and Tire King- fessional installation services to their “Goodyear is focused on the future of mobility with the Borrow eet. dom brands through a partnership with online tire purchase. At check-out, a strong emphasis on eets and electric vehicles,” Borrow offers customers subscriptions that allow CarAdvise L.L.C. customers are prompted to choose a Chris Helsel, Goodyear’s chief technology of cer, them to lease an electric vehicle for three, six or nine The partnership with CarAdvise, a service provider in their local area and said. “This relationship with Borrow continues our months, with some high-end vehicles in its stable. San Jose-based online vehicle repair complete the transaction. testing of digital service solutions for consumer eets, For example, a customer can lease a BMW i3 for be- and maintenance platform, will expand Following payment on eBay, cus- allowing Goodyear to lead in this space.” tween $524 and $624 a month, or a Tesla 3 for between eBay Motors’ tire installer network by tomers select a preferred date and time West Hollywood, Calif.-based Borrow has 80 cus- $1,100 and $1,500 a month. The company includes about 3,500 tire shops nationwide. for their installation appointment and tomers so far but said it is on track to have 750 cars on charging credits, all maintenance and roadside assistance Thousands of additional brand- can add additional services, such as a the road by year-end. in its price, and Goodyear will help it predict when tires name shops within the CarAdvise wheel alignment or oil change, via the Goodyear said its focus is to service the eet’s need to be replaced and provide roadside service with its network are slated to roll out over the CarAdvise platform. tires, as well as provide additional services in order company vans. coming months, the companies said. eBay launched its tire installation to maximize Borrow’s uptime and customer experi- It’s also only one of numerous points of entry Good- The partnership boosts the number services in 2017 in the U.S. with an ence. Goodyear is using its Mobile Tire Shop vans to year has staked out for the electric and shared vehicle of tire listings with installation services initial 9,000 service locations across service Borrow’s customers’ vehicles, with the poten- markets through its Innovation lab in San Francisco. available to eBay Motors customers the country. eBay ships customers’ tire tial to include its company-owned retail stores and Goodyear also has an ongoing pilot with Envoy more than 10 times over what it was, purchases directly to the selected auto- aligned dealer network as the pilot progresses. Technologies Inc., a provider of shared on-demand, with more to be added throughout the motive repair shops for installation at “Goodyear is using its unique predictive tire-ser- community-based electric vehicles, as well as a suc- year, eBay said. no additional cost. vicing solution for connected eets to forecast and cessful test program with Tesloop Inc., a city-to-city “As the nation’s leading automotive CarAdvise offers consumers a plat- automatically schedule needed tire maintenance and mobility service that exclusively uses Tesla electric repair and maintenance technology form to compare prices for mainte- replacement,” Goodyear said in announcing the part- vehicles, the tire maker said. platform, we are thrilled to partner with nance services at more than 20,000 re- nership. Culver City, Calif.-based Envoy is using Goodyear’s eBay Motors, allowing their customers pair shops nationwide. Consumers and “Leveraging Goodyear’s expertise in tires, the predictive tire-servicing program to forecast and sched- to leverage our technology and extensive commercial eets receive upfront dis- cloud-based platform predicts and automatically ule tire maintenance and replacement. Goodyear gathers network to further streamline eBay’s on- counted pricing when booking through schedules tire servicing via vehicle data and propri- data from Envoy’s connected vehicles and will use its line tire-buying process,” Greg Tepas, CarAdvise using its proprietary tech- etary algorithms.” SEE GOODYEAR, PAGE 24 CarAdvise founder and CEO, said. nology to approve and pay for services “Through this partnership, we’re able suggested by the shop real-time. Deadline nears to nominate dealer for Humanitarian Award VISIT TIREBUSINESS.COM: Check out our redesigned website. AKRON The winner, selected by an independent prior to the opening of the Special- PODCAST: Listen to our latest podcast: A talk with Brent Hesje, CEO of Nominations are due July 31 for committee outside of the tire industry, ty Equipment Market Association Alberta-based Fountain Tire. the 2019 Tire Dealer Humanitarian will receive the Tire Dealer Humanitari- (SEMA) Show, Nov. 5-8, in Las Ve- Award, which recognizes an inde- an Award Medal and a $2,500 donation gas. Mark Smith of Midas of Rich- PHOTO GALLERY: Check out photos from the recent Nexen dealer pendent tire dealer or retreader who, to the charity of his or her choice. mond was the 2018 recipient. appreciation meeting in Napa, Calif. during the past year, has made signi - The 26th annual award, sponsored To nominate a worthy tire dealer, Other online content: cant contributions to the betterment of by Tire Business, will be presented go to tirebusiness.com. Click on the STORIES • VIDEOS • PHOTOS • NEWS• LETTERS • PODCASTS his or her community through chari- during the 2019 Tire Industry As- awards tab and supply the pertinent table or public service work. sociation Honors Night on Nov. 4, information. 4 • June 10, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com IndustryNews NEWS IN BRIEF

Texas legislature passes Frasier Tire opens 5th location in S.C. another used tire bill AUSTIN, TEXAS ST. GEORGE, S.C. business,” Mr. Frasier said. FleetHQ Network. For the second time since 2017, the Texas Frasier Tire Service, which calls itself South “We will strive to build on the Fenders’ Tripp Lee, vice president of sales for the legislature has passed a bill prohibiting the Carolina’s largest independent Goodyear deal- outstanding reputation as business men,” he company, said staff will be added as the me- installation of unsafe used tires on highway er, has opened a location in St. George, its fth added. dium commercial business increases. Frasier vehicles. store in the state. Frasier Tire is in the Tire now has 64 employees. The bill, Texas Senate Bill 511, makes it Frasier is leasing the former LeGrande Fend- process of remodeling the “We will now be able to serve our custom- illegal for sellers to install tires that have er Inc. location, a 40-plus-year tire and automo- 7,500-sq-ft. facility, which er’s needs, especially for medium commercial 1/16-inch tread or less, that have damage tive service business that Frasier Tire called “a has eight bays. truck service, along I-26 from Charleston to exposing steel belts or other internal com- mainstay” in the St. George community. Mike Perritt, who has Newberry and on Interstate 95 from Hampton ponents or that have visible sidewall bulges Frasier Tire, which Julian Frasier started in previously served as Fra- County all the way to Florence,” Mr. Lee said. or improper repairs. Sumter in 1974, operates stores in Columbia, sier Tire’s service manager “Combined with our presence in Sumter, The U.S. Tire Manufacturers Associa- Charleston and Sumter. in Sumter and store man- which includes our Goodyear Authorized Re- tion, which drafted the model bill on which The new location is situated between the ager in Georgetown, will tread manufacturing plant, automotive service SB 511 was based, said it was pleased at the Columbia and Charleston locations, expand- serve as the store manager retail store, commercial truck service center bill’s May 23 passage. ing the Frasier Tire footprint. at St. George, which has and wholesale distribution warehouse — we The bill now goes to Texas Gov. Greg Ab- Mr. Frasier said he has known Mr. Fender Frasier six employees. see the St. George addition as the next logical bott for his signature. However, he vetoed for years and called it “an honor” to continue The store offers auto- step in our long range plan to continue being a similar used tire bill in 2017 because he the LeGrande Fender business. motive tire and repair services along with full the best source in South Carolina for Good- opposed its creation of a new crime. “(Mr. Fender) and his son Blaine are men of commercial truck service, including 24/7 emer- year tires along with service that is always ex- the highest integrity — a real credit to the tire gency roadside service through the Goodyear ceptional,” Mr. Lee said. Toyo recalls limited number of Proxes A27 car tires WASHINGTON Leeds West promotes 5 in auto division Toyo Tire Holdings of Americas Inc. is GREENWOOD VILLAGE, Colo. porting to Mr. Moran. He joined trict manager of LW’s Connecti- Midas stores in the Midwest; recalling a limited number of Proxes A27 Leeds West Groups (LWG), the LWG in 2013 after a long career cut Midas stores. He joined LWG previously was district manager all-season high-performance passenger tires, operator of 100 Midas and Big O with Midas International in San in 2013 as part of LWG’s acquisi- of LW’s Chicago-area Midas op- size P185/60R16 86H, because of the poten- Tires stores across the U.S., has Diego and Chicago. tion of 30 Midas locations from erations. He started with Midas tial for tread separation. promoted ve executives in its in 2013 in Denver before being The recall covers 2,169 tires produced from LW Automotive Division. promoted to the Chicago-area Sept. 21 through Sept. 25, 2018, at Toyo’s plant Heading the list of promotions district manager’s post. in Kuwana, Japan, though the tire maker esti- is Timothy Moran, vice president • Brendan LaBarre — to mated that about 3 percent of the tires being of the LW Midas Division East district manager of LW’s Con- recalled potentially are affected. Coast and the LWG Big O Tires necticut Midas operations; pre- A prototype rubber compound was mixed Division, who became head of viously was store manager of in error with production compound, which the LW National Midas Division the Midas location in Norwalk, may result in sections of the tire tread de- April 1. Conn. He will assist Mr. Lee in taching, according to Toyo. He oversees the rm’s Midas overseeing the Midas locations The tires being recalled have the DOT portfolio of 85-plus stores on the in Connecticut. He has been date codes 3718 and 3818 in their tire iden- East Coast, Midwest and in Col- with LWG since 2014. ti cation numbers — N3ELV573718 and orado. LWG CEO Judd Kyle Shader N3ELV573818. Mr. Moran joined LWG in said, “We are truly committed Toyo will notify owners, and dealers will March 2017 after a 15-plus-year to being the fastest-growing replace the tires, free of charge. Owners career with AutoPart Internation- aftermarket franchise automo- may contact Toyo customer service at 800- al, a sub-entity of Advance Auto tive repair retail company in 442-8696. Parts. the country and doing so from Toyo said it will reimburse dealers $35 Also promoted were: within the LWG family. We are per replaced tire for mounting, balancing Leads West Groups promoted ve executives, clockwise from lower left: • James Gould — to vice pres- Brendan LaBarre, Ben Oliver, Timothy Moran, Matt Lee and James Gould. committed to creating a true and handling. ident of the LWG Big O Tires Di- next level path with the correct vision, overseeing LWG’s nine • Matt Lee — to director of TBC Corp. structure and guidance that will Big O Tires stores in Colorado; LW East Coast Midas, oversee- • Ben Oliver — to director of help us achieve these lofty goals CORRECTION previously was director of the ing 15 Midas locations along the LW’s Mid-West Midas Division, with the full backing and support LWG Big O Tires Division, re- East Coast; previously was dis- overseeing the rm’s 23-plus of our board of directors.” Rick Brennan is vice president, strategic OBITUARY planning of Sumitomo Rubber North Ameri- Sentury moves Fla. HQ, ca Inc. (SRNA)’s Falken brand. His title was incorrect in a story (“Crossing into new seg- Rauso, co-owner ment; Falken targeting CUV market”) that warehouse to larger facility appeared in the May 27 issue. of Lockhart Tire HIALEAH, Fla. 140,000 square feet. PITTSBURGH Sentury Tire USA has moved its headquar- “Both warehouses inventory all of Sentu- CLARIFICATION Joseph L. Rauso, 82, co-owner of Pitts- ters and Florida warehouse to a larger facility ry’s tire brands,” Mr Wee added. burgh-based Lockhart Tire, died May 6. in Hialeah that it said will help expedite ship- “The increased capacity will accommo- With his cousin, Peter F. Rauso, Mr. ments to the rm’s distribution customers. date more SKUs and larger quantities to ex- Brian Hubbard, founder and former presi- Rauso owned and operated Lockhart The new site is twice the size of the former pedite ll-in orders, ensuring our distributors dent of Route 66 Tire & Rubber, has started Tire, which was found- location in Miami and offers rela- another company, SWT North America, to ed in 1961 by Peter A. tively easy access to both I-75 and handle the importation and distribution of Rauso. I-95, the company said. Speedways Tyres’ SWT brand. Mr. Rauso was ac- “The new of ce space accom- Mr. Hubbard, whose credentials include tive for many years in modates the additional marketing, time spent working with Greenball Corp., the Tire Dealers As- IT and support staff our company Deal Tire and a number of family com- sociation of Western has added,” Executive Vice Presi- panies, established SWT North America Pennsylvania. dent Maxwell Wee said. in early 2018 after leaving Route 66 Tire, Rauso He is survived by “Our business is growing, and we which in turn recently changed its name to his wife, Elaine (Tavolieri); son Jeffrey; have ambitious plans for expanding our Delinte, always have the tires they need.” SWT Americas L.L.C. daughters Debra (Gregory) Molter and Landsail, Sentury, Pantera and GroundSpeed Sentury Tire USA is a subsidiary of Chi- Mr. Hubbard stressed that Forth Worth, Lori (Ted) Roller; seven grandchildren; brands.” nese tire manufacturer Qingdao Sentury Tire Texas-based SWT North America is the and four step-grandchildren. The Hialeah warehouse complements Sen- Co. Ltd., which has factories in China and recognized business partner in North tury’s warehouse in Rialto, Calif., which spans Thailand. America of Speedways Tyres, a Jalandhar, India-based producer of farm, OTR and industrial tires. Business is conducted via con- Volume 37, No. 5—Tire Business (ISSN 0746-9071) is published biweekly by 2 years; group rates available. Surface delivery—to Canada, 1 year—$107 (includes Crain Communications Inc. at 2291 Riverfront Pkwy, Suite 1000, Cuyahoga Falls, GST); to all other countries, $119 per year. Four weeks notice required for change tainer-load shipments exclusively, he noted. Ohio 44221. Periodicals postage paid at Akron and additional mailing of ces. of address. Single copy—$4. Canadian Post International Publications Mail Product Interested parties can reach Mr. Hubbard Postmaster: Send address changes to: Tire Business, Circulation Dept., 1155 Gratiot (Canadian Distribution) Sales Agreement #40012850, GST #136760444. Canadian at [email protected]. Ave., Detroit, Mich. 48207-2912. Subscription rates: U.S., $79—one year; $148— return address: 4960-2 Walker Road, Windsor, ON N9A6J3. Printed in U.S.A. THREE DURABLE NEW TIRES FOR YOUR TOUGHEST CUSTOMERS.

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Brennan Lafferty V.P./group publisher Tire industry [email protected] • 313-446-6768 EDITORIAL STAFF P:330-836-9180 F:330-836-2831 keeping pace David E. Zielasko V.P./publisher, Editorial director [email protected] • 330-865-6131 Donald J. Detore with changes Editor [email protected] • 330-865-6126 t’s amazing how fast the tire business is chang- Bruce Davis Special projects reporter ing as a result of new technology and evolving [email protected] • 330-865-6145 consumer preferences, especially for cars. I Miles D. Moore You get a sense of this in reading the Q&A inter- Senior Washington reporter views in this year’s Mid-Year Tire Report. [email protected] • 703-256-9275 Kathy McCarron With more consumers overwhelmingly prefer- Reporter ring SUVs, CUVs and light trucks, tire makers [email protected] • 330-865-6127 have adapted their product offerings quickly. Michael McCrady Art director/page designer Today, you don’t see nearly as many announce- [email protected] • 330-865-6148 ments for new passenger tires as in the past, rather Letter to the editor INTERNET STAFF its tires for CUVs, SUVs and light trucks that are Erin Pustay Beaven taking center stage. Online content editor [email protected] • 330-865-6106 Last year, 69 percent of all new passenger vehi- Mark McCarron cle sales in the U.S. were such products. That’s led An argument against Digital coordinator the auto makers to curtail production of cars and [email protected] • 330-865-6123 sedans and to ramp up their light truck and SUV/ PRODUCTION/IT STAFF Scott Merryweather CUV offerings to meet these new consumer vehicle Media services manager preferences. all-weather designation [email protected] • 330-865-6104 It won’t be long before tire dealers start seeing Anthony DiPonio hank you and the entire staff at Tire Rack’s product screen that t the colloqui- Chief information of cer more of their customers coming into their shops [email protected] • 313-446-1605 seeking replacement tires for these higher-riding Business for producing a high-quality al de nition of “all-weather,” you’ll nd a publication for our industry and for huge variety. It would include, as we classify SALES STAFF vehicles. T P:330-836-9180 F:330-836-1005 the opportunity to create a dialogue on Tire them: grand touring all-season; crossover/ Like the auto and tire makers, tire dealerships need Patrick Cannon Business articles. SUV touring all-season; highway all-season Group sales director to gear up for this trend, to be ready when their cus- It was with great interest that I read light truck; on-/off-road all-terrain; and on-/ [email protected] • 313-916-1625 tomers come in for a set of replacements and want Bruce Davis’ recent article, “Who’s all in off-road commercial traction tires. Christine Zernick Sales director more information on which tire model and brand to for all-weather designation?” (April 29th This snapshot covers the spectrum, from [email protected] • 330-865-6108 buy to best meet their driving needs. edition, Page 12) as this is a subject that 22-inch tall passenger car tires to 35-inch Bruce Miller Another signi cant trend is the shift to more has been a topic of numerous conversations, and larger otation- and LT-metric all-ter- Regional sales manager all-weather tires in response to consumer demand for both internally and with our tire manufac- rain truck tires. To place such a diverse group [email protected] • 313-737-6665 turer partners. of products into the same category simply John Hickey “true year-round performance,” as noted by T.J. Hig- Sales manager gins, president, integrated consumer tire group, U.S. Tire Rack has made a conscious deci- because of their performance in ASTM [email protected] • 260-437-8502 and Canada, Bridgestone Americas Tire Operations. sion not to use the “all-weather” designation E1136-14 would be a great disservice, an Peter Bianchi All of Bridgestone’s newest consumer tire of- in reference to speci c tires featuring the oversimpli cation that implies commonality Sales manager three-peak mountain snow ake branding, amongst disparate tires based solely on one [email protected] • 312-265-6484 ferings provide enhanced snow traction, he said. Brooke Stender and we feel there are several strong reasons aspect of their performance. Classi ed sales representative Bridgestone is not alone in building tires for this for doing so. No, the three-peak mountain snow ake [email protected] •330-865-6117 new consumer need, as most every tire maker is First, in order to add an “all-weather” mark is not something that places the tire Lori DiFrancesco adding “all-weather” tires to their offerings. category to the accepted product mix, the bearing it into a new, separate category. It Sales and conference coordinator Tire makers and tire dealers also are dealing with industry must come up with a way to de- is an attribute of speci c tires across multi- [email protected] • 330-865-6121 an increasingly knowledgeable tire consumer. Vir- ne these tires, which is problematic. The ple categories, a “merit badge” of sorts that MARKETING & EVENTS STAFF Sarah Arnold tually all consumers today, and not just those inter- generally accepted colloquial de nition is helps further differentiate the capability (in Marketing & events manager ested in tires, are spending time researching prod- that “all-weather” tires are all-season tires one discipline) of certain tires from others [email protected] • 330-865-6169 ucts online before plunking down their hard-earned with the three-peak mountain snow ake within the same competitive or consider- Sally Dietz mark. The industry de nes all-season tires ation set. Assistant trade show manager cash. They want to make sure they are getting the [email protected] • 330-865-6112 as those with M+S branding, so that means There are additional “arguments” for not right tire for their vehicle at an acceptable price. AUDIENCE DEVELOPMENT “all-weather” tires are tires featuring M+S adopting the “all-weather” terminology, but This puts pressure on tire makers and tire deal- Jennifer Mosley and 3PMSF branding. Every dedicated win- in order to keep some semblance of brevity Group director, Audience development ers alike as they must satisfy these consumers well ter tire in the North American market also in an already lengthy response, I’ll leave you [email protected] • 312-649-5312 before they make their tire purchase, be that online ts that description, so the de nition will with a related, interesting anecdote. Good- For new subscriptions or change or when calling or visiting a dealership. need to be a little more speci c to exclude year was the rst tire company to use the of address write to: Circulation Department, Tire Business As a result, it is the tire makers’/tire dealerships’ those offerings “All Weather” nomenclature, and their histo- 1155 Gratiot Ave. Winter tires aren’t required to feature ry with the verbiage goes back to 1916. “All Detroit, Mich. 48207-2912 websites, in many cases, that have become the ini- or call 877-320-1716 (U.S. and tial point of contact, the initial sales opportunity, UTQG branding, so we could try to de ne Weather” has been a registered trademark Canada only) or 313-446-0450. “all-weather” tires as “three-peak moun- of Goodyear since 1948, 51 years before FAX: 313-446-6777 companies have with consumers. If these websites email: [email protected] don’t do their job and draw customers in, the per- tain snow ake-branded tires that also have the three-peak mountain snow ake symbol uniform tire quality grade branding.” Flo- was created. While the industry using this For single copy sales: son behind the counter won’t even have a chance to email: [email protected] tation- and LT-metric tires are not required name for a product category could hardly be make a sale. Reprints: to display a UTQG on their sidewall, so considered copyright infringement, it would Lauren Melesio That’s something to keep in mind in this fast-evolv- that would mean any of those types of tires undoubtedly lead to the genericide of the in- [email protected] • 212-210-0707 ing tire world. with 3PMSF branding are excluded from the tellectual property of one of its foundational EXECUTIVE OFFICES “all-weather” category. Not to mention, “not members. 2291 Riverfront Pkwy, Suite 1000, required” doesn’t mean “not allowed,” so Cuyahoga Falls, Ohio 44221 Letters to the Editor there is always the option for a manufacturer TJ Campbell P:330-836-9180 F:330-836-2831 to come to market with a winter tire and/or a Tire information specialist CRAIN COMMUNICATIONS INC Tire Business encourages letters to the editor otation/LT-metric tire with UTQG brand- Tire Rack Keith E. Crain Mary Kay Crain on any subject of interest to independent tire ing and the 3PMSF symbol. South Bend, Ind. Chairman Vice chairman dealers. Send a letter to: Editor, Tire Business, Some may argue there doesn’t have to be KC Crain Chris Crain 2291 Riverfront Pkwy, Suite 1000, Cuyahoga Falls, an of cial de nition. After all, there is no President Senior executive accepted de nition for what constitutes an vice president Ohio 44221. Letters also can be emailed to Lexie Crain [email protected]. “all-terrain” tire, and that doesn’t seem to Armstrong Robert Recchia cause any problems, but there’s a very good Secretary C h i e f n a n c i a l o f c e r Letters must be signed and may be edited for reason not to take an “I know it when I see G.D. Crain Jr. Gertrude R. Crain length and clarity. Please include a daytime it” stance on “all-weather” tires, and it is Founder Chairman phone number for veri cation purposes. Letters arguably the most important reason not to (1885-1973) (1911-1996) also may be published on TB’s website: lump them all together into a category. www.tirebusiness.com. If you look at all the offerings on Tire

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*The Continental Tire Visa Prepaid Card is issued by MetaBank®, Member FDIC, pursuant to a license from Visa U.S.A. Inc. No cash access or recurring payments. Can be used everywhere Visa debit cards are accepted. Card valid for up to 12 months; unused funds will forfeit after the valid thru date. Card terms and conditions apply. Consumer Promotion Visit us on the web at www.tirebusiness.com TIRE BUSINESS, June 10, 2019 • 9 AutomotiveService Inactive port useless for battery backup connection By Dan Marinucci Terminal 16 is hot (electrically active) [email protected] all the time and terminal 4 is ground. Dan Marinucci lways connect auxiliary pow- Electrically speaking, then, this is a freelance er to a point on the vehicle automotive diagnostic connector is an ideal Athat is electrically active all service writer and place to connect backup power. the time. Here’s why. former editor of Finally, remember that you can The safest and most-reliable point two automotive source a slick adapter that neatly may be the test connector under the service magazines. links your backup power supply di- left side of the dashboard. Recently, rectly and reliably to this underdash several readers have asked me why I diagnostic connector. didn’t recommend connecting aux- try-standard, underdash test connector. The cable makes the hookup fast iliary power to a cigarette lighter This connector is an integral part and easy. socket or similar power port. Let me of the OBD-II diagnostic system in- Tire Business photos by Dan Marinucci recap a previous discussion. troduced in 1996. Dan can be reached via e-mail at tirebusi- Terminal 16 in the underdash connector An example of the adapter cable cited I had recommended applying ex- Each of these underdash connec- [email protected]. His previous columns are is a convenient, constantly hot, 12.00- in the text is tool number MS6209 from ternal, backup power to a vehicle tors has two critical electrical pins. available at www.tirebusiness.com. volt connection point for backup power. Associated Equipment Corp. before disconnecting its battery for any reason. This topic appeared in the March 18 issue on page 7 (“Auxiliary power saves vital computer memory”). Linking auxiliary power to the electrical system maintains computer memory that might otherwise be IMPROVED canceled when a technician discon- nects a battery during a repair. PERFORMANCE One common backup power source is a “jump box” or “booster box” that IS ONLY HALF techs usually use to jump-start vehicles. Another is a properly charged THE STORY automotive battery. The all-season Roadtour® 855 SPE Note that the negative terminal on a backup power source connects to was re-engineered to provide a comparable negative terminal on improved treadwear and snow the vehicle. A negative terminal, which has an performance without sacriﬁcing HerculesTires.com electrical pressure of approximately braking on wet roads. Those advances zero volts, is often called “ground.” The auxiliary power source’s other delivered with a 45 day trial and terminal is electrically positive with treadwear coverage up to 85,000 an electrical pressure of approxi- miles, make this tire a true all-season mately 12 volts (battery voltage). Traditionally, techs have called performer for your customers this terminal “hot” or “live.” and your bottom line. There’s a critical step to applying backup power properly to any vehicle: You must connect its positive

terminal to a positive point on the Roadtour vehicle’s electrical system that is active or hot all the time. You cannot and should not assume that any old power port inside a vehicle is hot all

the time. ® First, remember that an interior 855 SPE power port is a female socket that looks like a traditional cigarette lighter socket. More recently, auto makers have installed these ports in dashboards, center consoles and various other locations inside the vehicle. Second, a traditional cigarette lighter socket was hot — electrically active — all the time. Also, it was designed to carry more electrical current (amps) than modern power ports do. So, it used to be an effective place to connect backup power. Third, modern power ports that look like cigarette lighter sockets are ineffective places to connect auxiliary power for a key reason: Typically, these ports are electrically dead until you turn on the ignition switch. Fourth, shutting off the ignition switch and keeping it shut off during any backup power procedure is the accepted, proper practice. It’s the safer, smarter and more-pro- ductive approach, but it doesn’t jibe with common power-port operation. OK, the vast majority of vehicles that tire dealerships and service shops encounter already have the indus- Performance Promise #herculestires 10 • June 10, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Tire Business Special Feature Mid-YearTireReport Nokian ramps up brand awareness campaign By Bruce Davis striving to broaden that perception dealers and prospective Nokian cus- [email protected] through stepped-up social media cam- tomers attending a ride-and-drive event COPPER MOUNTAIN, Colo. paigns, targeted print and television in Copper Mountain for the rm’s latest As Nokian Tyres Inc. moves closer to advertising and other non-traditional product roll-outs — the Hakkapeliita the launch of production from its plant means, according to Nokian’s Hans LT3 premium light truck tire and Noki- under construction in Dayton, Tenn., the Dyhrman, director of marketing, an WR G4 and G4 SUV tires. company is intensifying efforts to im- “Nokian is becoming the ‘life-driv- The company’s brand-building ef- prove brand awareness and drive more en’ company,” Mr. Dyhrman said, forts of the past few years appear to be potential customers to Nokian dealers “whose mission is to ‘give you peace paying off, he said, noting that Noki- throughout the U.S. and Canada. of mind in all conditions.’” an has a brand loyalty — de ned as Still known predominantly for its Mr. Dhyrman made his comments brand owners who are “likely” to buy strengths in winter tires, Nokian is earlier this year to dozens of Nokian the same brand again — that’s now Tire Business photo by Bruce Davis Hans Dyhrman at the launch of the Nokian Hakkapeliitta LT3 light truck tire at Copper Mountain, Colo. higher than Michelin and Goodyear, according to research conducted by YouGov P.L.C., a Redwood City, Ca- lif.-based market research rm. Leading the way from a consumer point of view is the company’s current advertising campaign using “It’s a beautiful journey” as the core message. The ads — which string together short vignettes of everyday life as seen from a passing vehicle — are meant to convey images of safety, value and sustainability, Mr. Dhyr- man said in a separate conversation with the tire industry trade media. The campaign also taps into the “intrinsic” value system — doing the “right thing” — that is at the core of Finnish culture, according to Mark Earl, senior vice president, Nokian Earl Americas, which draws heavily on the concepts of sustainability. At the same time, Nokian is en- gaging strategically with key social media “in uencers,” such as snow- boarder/outdoor adventurer Austin B. Smith, who’s known for his convert- ed 1953 GMC re truck, or the Kelly Brush Foundation, a non-pro t whose mission is to inspire and empower people with spinal cord injuries to lead active and engaged lives. Mr. Smith helped Nokian promote the brand name at a number of ski resorts operated by ski area operator POWDR Adventure Co. — a Nokian partner — through a “ nd the green tire” contest. Nokian hid a tire painted green somewhere on the resorts’ prop- erties and challenged visitors to nd it, take a picture of it and post it online, in return for a chance to win sets of tires. Nokian is running consumer ads in a number of media targeting outdoor recreation, such as skiing, hiking, cy- cling, etc. More recently Nokian was the presenting sponsor of the inaugu- ral RendezVan, a ve-day camping LOOKING BEYOND THE HORIZON and van-life-inspired festival that was held at Mount Bachelor, a resort BKT’s extensive product portfolio comprises speci c cutting-edge tire ranges to cater for the most near Bend, Ore., April 17-21. The event — which celebrated the demanding needs in a variety of elds such as agriculture, construction, and OTR, as well as transport tradition of skiers camping out each and agro-industrial applications. spring at Mount Bachelor to get an early start on the slopes — included skiing BKT USA Inc. and riding, music, après-ski activities 2660 West Market St., Suite 100 and other activities at one of the larg- Fairlawn (Akron) - OH 44333 est ski mountains in North America. Toll free: (+1) 888-660-0662 - Ofﬁce: (+1) 330-836-1090 An important part of Nokian’s Fax: (+1) 330-836-1091 SEE NOKIAN , PAGE 11 steps up its social media campaigns, targeted print and television advertisements

Visit us on the web at www.tirebusiness.com TIRE BUSINESS, June 10, 2019 • 11 Tire Business Special Feature Mid-YearTireReport Continental boosting tread rubber output at U.S. plant MOUNT VERNON, Ill. as the quality of ContiTread becomes 40 years of experience in truck tire Continental Tire the Americas better known in the market and as we manufacturing to improve the tread has added a second production continue to add new partners to our pro les and rubber mixing process,” shift for pre-cured tread rubber at ContiLifeCycle retreader network.” John Barnes, head of ContiLifeCycle its Mount Vernon tire plant in an- Conti did not disclose detailed retreading for the Americas, said. ticipation of a 300-percent jump numbers as to the scale of output. Investing in technologically ad- in retread production this year by Continental added tread rubber vanced production machinery, Con- Nokian is using social media and ContiLifeCycle customers in North production to the Mount Vernon tinental said, ensures the quality and targeted print and TV ads to boost America. plant a year ago as part of a plan to consistency of its retread products and brand awareness. The decision to boost production cut delivery times to its ContiLife- maximizes safety for plant personnel. follows a double-digit percent in- Cycle retread customers in the U.S. “Our changeover process to move Conti expects continued demand crease in demand for the company’s Prior to that, Conti had supplied from producing one retread pattern to Nokian for it’s ContiTread retreaded tires. CONTINUED FROM PAGE 10 products last year, Tom Fanning, vice its licensed retread partners solely producing a different one is completely strategy to build brand awareness president of sales and marketing for from a plant in Morelia, Mexico. driven by programming,” Mr. Barnes ferent skill set in the operators.” is its commitment to help train its commercial vehicle tires, said. “We are achieving phenomenal said. “This shortens our changeover There are 26 ContiLifeCycle retread dealers’ personnel in their own places “We expect that growth to continue outcomes by leveraging the team’s time signi cantly. It also requires a dif- plants operating in North America. of business, Mr. Earl said. That sen- timent was echoed by many of the dealers attending the Copper Moun- tain event. “We especially want to share with our dealers’ employees the strength of our R&D efforts,” Mr. Earl added. Among the company’s core technical competencies are road safety, worker safety (in its facilities) and environmental awareness in terms of a reduced greenhouse gas footprint and lowered rolling resistance. This initiative — which is a commitment of both time and nancial resources — is seen as critical in re- cruiting dealers in areas where the brand is still relatively unknown, such as the U.S. Sunbelt states. “We have great experience in (de- signing tires for) extreme weather,” Mr. Earl said. “Now we have to shift that over to all-season and eventually to summer tires.” Nokian is in the process of opening a sprawling test facility in central Spain that will allow the Finnish tire maker to accelerate its development of summer and all-season tires, which will consti- tute a large percentage of the tires to be produced at the Dayton plant. “We know we will have to overcome a certain stigma (of being a winter-tire specialist),” Mr. Earl said, in order to attract new dealers in the targeted areas. At the same time, Nokian will strive to maintain its policy of exclusivity, of not overpopulating an area with dealers in order to provide its partner dealers the opportunity to build the brand steadily. A number of dealers attending the Copper Mountain event independent- ly of each other said making the rst sale of a Nokian-brand tire can be a lot of work, “but thereafter the second and subsequent sales become easier because of the customer satisfaction.” Nokian also is encouraging its dealers to take advantage of “Goo- gle My Business,” an initiative that allows businesses to created a business pro le that appears when people are searching for tires or auto service on Google Search and Maps. These initiatives are seen as par- ticularly key considering the goal set for the North American team when the U.S. plant was announced — i.e., to double sales volume by 2023 to more than $400 million. To achieve this, Nokian needs to gener- ate 10- to 15-percent annual growth over the ve-year target period. In 2018, Nokian’s sales in North America grew 17 percent to $221 million, or roughly 12 percent of the rm’s global revenue. Growth stalled, however, in the rst quarter of scal 2019 at $49 million, essentially unchanged from 2018. 12 • June 10, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Tire Business Special Feature Q &A Mid-YearTireReport Replacement tire market bolstering Bridgestone t’s been a very aggressive year thus The current year to date is on par While not necessarily a surprise, pect to see that aggressive of a pace The Firestone brand has far for Bridgestone Americas Inc., A with our expectations. As antic- A we are pleased by the strength in refreshing your portfolio? What Q garnered plenty of attention Ias the tire maker has rolled out ve ipated, the replacement tire market we’ve seen in replacement tire sales has been the strategy behind that? this year, with three new prod- new products, including three with the has shown strength as many newer in the rst half of 2019. This has been Consumers today are very knowl- ucts. How important is the brand Firestone brand. vehicles are entering their rst tire a positive for Bridgestone and for our A edgeable about their tire choic- to Bridgestone? Where does it t TJ Higgins, pres- replacement, including vehicles with dealers, and we are looking forward to es. They have done their homework in the Bridgestone portfolio? ident, integrated high-value-added tire tments, such as nishing the year strong by delivering about the available products in the The Firestone brand accounts for consumer tire run-ats and high-rim diameter tires. more high-value-added replacement market and their expectations for the A approximately half of all Bridge- group, U.S. and Demand in the original equipment tires to our dealers and consumers. category are incredibly high. It’s our stone consumer tire sales in North Canada, Bridge- business has softened slightly versus To help our customers capitalize on job as a leading tire manufacturer to America. The brand is critically im- stone Americas last year, but this was expected as last this opportunity, Bridgestone recent- meet and exceed consumers’ expec- portant to the health and success of Tire Operations, year we were at peak levels. We look ly announced a strong lineup of new tations with every tire we sell. our business — and not just in the discussed the year forward to seeing stabilization of the replacement tire offerings launching To do that, we are investing in Americas, it’s a brand trusted by deal- thus far with Tire OE business in the second half of 2019. in 2019 in both the Bridgestone and more and better technology to bring ers and consumers all over the world. Higgins Business. Firestone brands. new products to market faster with Firestone is a time-tested brand What are some of the pleasant unprecedented innovation. We want known for delivering products with How would you describe busi- Qsurprises you are seeing in the With ve new tires rolled out to provide tires that offer fewer trade- durable, dependable performance and Q ness thus far in 2019? industry? Q this year already, can dealers ex- offs and deliver on consumers’ needs. uncompromising quality. You see this reected in each of the new offerings launching in 2019. In fact, we intentionally positioned our new all-weather touring tire in the Firestone portfolio as we wanted to make this differentiated offering available to consumers seeking a tire that works just as hard as they do.

How have tariffs and/or anti- Q dumping and countervailing duties affected your company? How are you reacting to them? Certainly, the impacts of the A regulatory environment are being managed across the Bridgestone business. The environment this year has been very uid, and we remain exible as this uidity may continue throughout 2019. Accordingly, Bridgestone will work to leverage our comprehensive global supply chain to meet the needs of customers. We remain con dent that the diversi cation of our supply chain will allow for continued strong service to our customer base.

Where do you see the indus- Qtry markets heading during the last half of 2019? We project stabilization of the A OE tire business in the second half of 2019, and we anticipate replacement tire sales will remain fa- vorable for the remainder of the year with a particular emphasis on continued growth of high-value-added replacement tires such as all-weather, run-at and high-rim-diameter tires.

What kind of trends are you Q seeing in the marketplace? How is your company reacting to them? We continue to see growing de- A mand for high-value-added tires such as high-rim-diameter products, tires with run-at technology, and winter tires. With regards to winter performance, we are seeing increased adoption of all-weather tires as consumers demand tires that offer true year-round performance. Bridgestone is positioned for meeting these needs with the introduction of the Firestone WeatherGrip tire — the company’s rst all-weather touring tire offering in the U.S. and Canada. All of the company’s newest consumer tire offerings provide enhanced snow traction and many, like the Firestone WeatherGrip, Firestone Destination A/T2 and Firestone Destination X/T tires, are 3-Peak Mountain Snowake (3PMSF) certi ed. Consumers today are incredibly educated when it comes to their tire choices. Virtually all consumers are CONTINUED ON PAGE 13 Bridgestone

Visit us on the web at www.tirebusiness.com TIRE BUSINESS, June 10, 2019 • 13 Tire Business Special Feature Q &A Mid-YearTireReport

CONTINUED FROM PAGE 12 technologically-advanced tires to in the marketplace. How has the UHP tire market What are some of the challeng- spending time researching tires be- consumers. Q fared in light of the prolifera- Q es of the industry going for- fore they visit a dealer to make a tire How has the car manufacturers’ tion of LT, SUVs and CUVs? Are you ward? What keeps you up at night? purchase and, when they arrive in Do you have a minimum ad- Q move to light trucks, SUVs and seeing growth and potential for Certainly, it’s a very exciting store, they want access to the prod- Qvertised price (MAP)? Have you CUVs impacted your product mix? future growth? Any new innovations A time to be part of the tire industry. uct of choice that meets their needs. started it? If so, why is it important? We continue to rene our con- in the segment? We will see more change in the tire With this in mind, we are develop- If not, is that something that is being A sumer product portfolio to support There is still a loyal customer base and automotive industry over the next ing closer customer partnerships with discussed or considered soon? vehicles that are coming into new car A of enthusiast drivers who seek a 20 years than we’ve seen in the last an increased emphasis on proactive, Yes, Bridgestone does have a dealer’s showrooms and retail stores. best-in-class UHP tire offering and 100 years — and at times the pace of collaborative forecasting. We want AMAP program in place for many As the car parc evolves, we are focused we don’t see that changing any time change can feel a bit daunting. to ensure that we do more than just of our Bridgestone and Firestone tire on growing the number of Bridgestone soon. Our Potenza RE-71R tire con- Ensuring Bridgestone is at the design and manufacture best-in-class offerings. We continue to invest heav- and Firestone tire tments on new ve- tinues to lead the competition and be forefront of new innovation and ad- Bridgestone and Firestone tires — it’s ily in bringing technologically-ad- hicles as this drives rst and second the tire of choice among car club rac- vancements in automotive technology our job to ensure that consumers have vanced products to market, while replacement tire sales. ing enthusiasts such as the members is a constant thought in my mind, but access to these products when and also making sizable investments in We remain focused on delivering of the Sports Car Club of America it’s one propelling me and my team where they need them. traditional, digital and sports market- differentiated products that meet the (SCCA). You can look for Bridgestone forward. We are laser-focused on ing to support and grow our brands. needs of consumers both today and to continue innovating and delivering introducing advanced products that What sectors look to be strong? Our MAP program is designed to en- in the future, and our replacement ultra-high-performance offerings that will redene the tire industry as con- QAre they sustainable for the fu- sure that the pricing of our products tire introductions re ect this com- meet the needs of consumers in this sumers’ interests and economic times ture? What sectors are struggling? How re ects their value and differentiation mitment. segment. change. soon do you expect them to rebound? Consistent with recent an- A nouncements from various auto makers who have suspended production of passenger cars and sedans, we continue to see growth in the SUV, CUV and light truck tire segments — both from an OE and replacement The Future in Motion tire perspective. As consumer preference for CUVs, SUVs and pickup trucks continues to grow, we expect to see further growth in high-rim-diameter tire sales. This is a trend we anticipate will continue in the future and you’ll see this reected in our replacement tire introductions in 2020 and beyond.

Do you expect to roll out any addi- Q tional products in 2019? What will they be and what sector will they serve? All of the consumer tire prod- A ucts that we are launching this year have been revealed to Bridge- stone afliated dealers. The Fires- tone Destination A/T2 and Firestone Destination X/T all-terrain tires will be available to consumers in the U.S. and Canada beginning August 2019. All other products are available now — this includes the new Bridge- stone Blizzak WS90 winter tire, the Bridgestone Turanza QuietTrack touring tire and the Firestone Weath- erGrip all-weather touring tire. While the offerings span various segments, we have focused on introducing products that deliver across three top performance cri- teria: wet, winter and wear. All of the new Bridgestone and Firestone tires launching in 2019 deliver in these key areas. Do you foresee any price hikes Find a new road forward. Q in the second half of the year? Our pricing strategy is deter- From speedway to driveway, Continental puts you in the driver’s seat. Amined by a number of factors, including but not limited to the cost of raw materials and other market dynamics. We continue to monitor Based in Fort Mill, S.C., Continental Tire the Americas, LLC changes that may affect our costs and ability to invest in our brands and will manufactures and distributes a complete premium line take appropriate action as needed. of passenger, light truck and commercial tires for original equipment and replacement markets. Our ultra-high Do you expect any major invest- Q ments in the next six months? performance tires include award-winning technologies We have multi-year expansion that focus on safety, help save money, and reduce CO2 A projects underway at several of our passenger tire facilities in North emissions. Continental’s premium products are proudly America, including projects aimed sold at Mr. Tire and Big 3 Tire Dealers. at increasing production of high-value-added offerings at our facilities in Wilson, N.C.; Joliette, Quebec; CONTINENTAL PRODUCTS ARE PROUDLY SOLD BY THE and Aiken, S.C. These projects are on schedule and will enable Bridgestone to increase capacity, AND as well as increase our capability to deliver leading performance and FAMILY OF DEALERS 14 • June 10, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Tire Business Special Feature Q &A Mid-YearTireReport Compact tractor segment remains strong for Titan s a player in the agriculture How would you describe spots we are excited about in 2019, even higher demand for LSW than With the tariffs impacting com- segment, weather plays a sig- Q business thus far in 2019? including growing demand for our we were expecting. A modity prices, end-users are ni cant role for the success of We expected a stronger start to 30- and 32-ply Goodyear Logger We’ve also received positive feed- hesitant to buy and are minimizing ATitan International Inc. The Quincy, A2019, but factors in the North Lug III forestry tires, as well as for back from our dealer network regard- purchases. This has had a damp- Ill.-based tire maker has intensi ed American ag market, including lower our new Goodyear R14 crossover tire ing our rst-ever aftermarket wheel ening effect on our business. We the rollout of its Goodyear R14 cross- commodity prices, ongoing trade in the compact tractor segment and program. While we offer limited control what we can and adjust ac- over tire designed for year-round use, concerns and a delayed planting for our Goodyear R-1W farm tires. sizes — primarily implement and cordingly, running our plants at the in various condi- season, have all had an impact. skid steer sizes — as a response to a production levels we need. tions. That said, from an aftermarket What are some of the pleas- market need, we are evaluating the The tariffs on steel have also had Tire Business perspective, we are very close to Q ant surprises you are seeing potential to expand that in the near an impact on business. Because we discussed that and where we were last year. We got off in the industry? future. also manufacture wheels, we work other industry top- to a good start from an order intake At the beginning of this year, to keep in line with many of our ics with Titan’s perspective. Much of this was fu- A we were pleasantly surprised How have tariffs and/or OEM customers regarding steel and Paul Hawkins, se- eled by a consistent year-over-year with the large demand for our LSW Q antidumping and coun- are prepared to react alongside them nior vice president, growth in demand for our Low tires. While we had planned for tervailing duties affected your with any market changes. aftermarket sales, Sidewall Technology (LSW) tires. growth this year, the qualifying or- company? How are you reacting North America. Hawkins We have a number of other bright ders from our dealers included an to them? Where do you see the indus- Q try markets heading during the last half of 2019? Although we are hopeful for a A rebound, it really is all dependent on what Mother Nature throws at the ag industry. We will be ready to respond to customer needs and changing market demands. On the OTR side, we believe that construction will remain steady and forestry will remain strong.

What kind of trends are you Q seeing in the marketplace? How is your company reacting to them? Tires for subcompact and com- A pact tractors have traditionally been offered in ag (R-1), turf (R-3) or construction (R-4) treads. But these machines are used year-round in all conditions, and up until now there hasn’t been a compact tractor tire as versatile as the machines they’re going on. That’s why we introduced the Goodyear R14 crossover tire for these applications — to eliminate the need to choose one tread over another. We think this is the way the market will go, and OEMs certainly agree with that — including Kubota, with whom we’ve entered into an exclusivity agreement on certain sizes. That said, we’re also going after the aftermarket aggressively with this tire and have introduced 18 sizes in the last year and a half. We’re seeing strong growth in our R-1W lines as many customers migrate away from R-1 styles. That’s a big part of why we’ve undergone such a signif- icant expansion of our agship R-1W line, the Goodyear Optitrac. If weather continues to be wet in our agricultural regions, we also expect to see an uptick in demand for R-2 lines, such as our They have big brand names. popular Goodyear Custom Flo Grip. With the need for otation, we’re seeing a continued increase in demand for our large LSW Super Sin- We deliver more value. gle tires. Last year we conducted eld testing and ground-bearing pressure testing to In recent fuel e ciency tests conducted by FPInnovations® PIT Group, a neutral third-party demonstrate that our Super Single tires research fi rm, Double Coin went head-to-head against two leading TBR tire brands. We fi nished are a viable alternative to track machines. We’re nding that more farm- second. Even though we didn’t fi nish fi rst, our success proves one thing—our tires deliver more ers are evaluating their options, and some are even changing from track value to the customer—making the simple point that the Smart Money is still on Double Coin. setups back to wheeled machines. When it comes down to it, growers are more price-conscious in ©2019 CMA, LLC. Read about it at: www.DoubleCoinTires.com/fuel-e ciency these market conditions, and if they can get the same performance with a otation tire setup but at a much lower cost — a difference of $40,000 or more — than a track machine, it becomes a no-brainer To fi nd your local dealer visit: to some growers. CONTINUED ON PAGE 15 www.DoubleCoinTires.com Visit us on the web at www.tirebusiness.com TIRE BUSINESS, June 10, 2019 • 15 Tire Business Special Feature Q &A Mid-YearTireReport CONTINUED FROM PAGE 14 What is your online strategy? Titan recently gained an exclu- will benet both companies and our continue with a customized approach What segments look to be QHow is it evolving? Q sive tment deal with Kubota collective customers. based on what our dealers are asking Q strong? Are they sustainable We provide product information to Tractor for its Goodyear R14 cross- for and provide them with the most for the future? A the market regarding what we can over tires on select Kubota compact Please provide an update on comprehensive training in the industry. Within the ag market, we see offer them and direct all inquiries to tractor models. How important is Q the dealer training program. A the compact tractor segment re- our dealer network who are equipped that relationship for Titan? What is How many dealers have taken the What are some of the challenges of maining strong in comparison to the and educated to support those requests. the benet for Titan? course? How many do you expect to Qthe industry going forward? What rest of the market. And with the new Our market approach is built Titan recognized that there was put through the course during the keeps you up at night? Goodyear R14, we’re at a competi- around driving business to our deal- A an unmet need when it came to second half of the year? How does There have been many new tive advantage not just on the OEM ers and providing marketing tools and tire versatility in the compact and the program help Titan? A entrants into the agricultural tire side of the business but now in the training to help them sell our prod- subcompact tractor market. We be- Titan University expanded in business, whereas 10 years ago com- aftermarket. ucts. Over the last few years, we have lieve this exclusivity agreement with A 2019 with intermediate and ad- panies were leaving this industry. Additionally, demand for our row- heightened the importance of our Kubota, at the OEM level, will give vanced trainings for our dealer net- There have always been and will con- crop R-1W lines and LSW offerings dealers’ customer experience by pro- us a strong opportunity to in uence work’s sales staff at any experience tinue to be challenges, but this keeps has greatly increased among both viding them with an online sales and the compact aftermarket segment. level. In 2018, we had more than 400 us on our toes and working hard to OEMs and end-users. As I mentioned marketing resource portal. We see Kubota as a leader in that attendees participate in the program. make sure we’re remaining compet- previously, forestry continues to be a We are always evaluating what market and are excited that they share This provides our North American itive in this sector — from a quality bright spot for us — both from a mar- additional tools and resources we our vision for the future of compact tire dealers with additional education, and innovation standpoint, service ket health standpoint and a product can offer to help them better sell into tractor tires. We believe this will con- while strengthening our relationship and support advantages and with our quality advantage standpoint. any market. tinue to be a great partnership that with our dealer network. We will pricing strategy.

Do you expect to roll out any Q additional products in 2019? What will they be and what sectors will they serve? In early 2019 we announced A the line expansion of our industry-unique Goodyear R14 crossover tire for compact tractors. We added 14 new bias sizes in addition to the four radial sizes introduced in 2018. We recently expanded our agship Goodyear Optitrac R-1W row crop tire line to include 11 new options in addition to the 40-plus sizes released over the past year. With this expansion, we’re ensuring that our most popular R-1W line is available in every size to meet the front and rear needs for every MFWD row crop conguration in the industry. We also recently introduced sizes for our rst R-1 otation tire designed for self-propelled sprayers, the Goodyear Optitorque line. We are committed to innovation, development and extensive testing prior to releasing new products — and we have a lot of new product testing underway that we’re really excited about.

Do you foresee any price hikes Q in the second half of the year? No, we do not foresee any price A hikes in the second half of the year at this time.

Do you expect any major invest- Q ments in the next six months? We are continuing to invest in A our industry by offering education and service trainings for our dealer network. This summer we are offering advanced TIA tire service technician training and will continue offering Titan University in 2020. We are committed to educating our dealers on ag tire sales training, new industry and product developments, innovation and tire safety best practices to better service the needs of their customers. We continue to invest in R&D to keep our competitive advantages regardless of market conditions, as demonstrated by the continued development of our LSW tires and the launch of our industry-unique R14 tires in 2018. We’re also investing in continued improvement within our plants, continuing to implement lean processes at our production facilities to cut waste while keeping quality a high priority. Nearly every facility in our global footprint has incorporated some form of lean methodology. 16 • June 10, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Tire Business Special Feature Q &A Mid-YearTireReport Tire Business Special Feature BKT continues search for location of U.S. plant KT USA Inc. is on track to BKT deals with only off the road rialized, yet. The demand for tires build a plant in the U.S.? How The projections have not changed. build its rst manufacturing A tires. Hence, our business is di- has managed to stay stable in spite soon will a site be selected? A We will begin low, start slow, plant in the U.S., according vided into various off-road segments. of this. The necessary spurt and im- The sites that we had selected rise higher and catch re. We are Bto Minoo Mehta, Farm: The ag industry has been petus needed is still awaited from A did not go through, and we are projected to start with $120 million president of the hit the most in the Midwest due to the government. It is unfortunate still looking for the ideal location initial investment and with around U.S. subsidiary of severe weather conditions. Millions that government policies affect the with all our expectations being met. 120 people and grow further. India’s Balkrish- of acres have not been tilled this economy and the demand of tires. Looking at the political climate in na Industries Ltd. year. The deteriorating trade rela- Large OTR tires: The demand for the U.S., we are in no hurry to nal- Has the capacity upgrade for (BKT). Mr. Mehta tionship with China has put severe BKT tires has increased substantially ize. The right timing is everything, Q tires and carbon black been ini- discussed his com- pressure on exports of ag products. in this segment, because earlier our and when the timing gets right, tiated at your plants in India? How pany’s successes as Prices have slumped, and farm- range was small, and a reputation for BKT is known to take swift action. far along is the process? What is the well as the challeng- Mehta ers are hurting. All these, ultimate- good quality was yet to be established. timeline for completion? es ahead in an inter- ly, affect the demand of ag tires. Now that both are coming in play, re- Please review the expected The carbon black plant is up view with Tire Business. Industrial and construction: Al- peat demand is on a very healthy pace. Q square footage/capacity/ A and running and scheduled for though the infrastructure bill was number of employees at the a second expansion by February How would you describe supposed to be a pre-election prom- Can you provide an update plant? Is the expected cost $100 of next year. The new tire plant at Qbusiness thus far in 2019? ise of Mr. Trump, it has not mate- Q on your announced plans to million? Bhuj (India) is continuously adding capacity and the growth in production will be primarily in ag radials, OTR radials, industrial and construction tires.

What are some of the pleas- Q ant surprises you are seeing in the industry? Government policies to restrict A China ooding the U.S.A. tire market with Chinese government- induced lower prices is the biggest surprise. It has certainly helped in stopping third and fourth tier, low- quality products coming to U.S. markets. It will help end-users in the long run both in terms of longer life and for a safer and greener environment.

How have tariffs and/or anti- Q dumping and countervailing duties affected your company? How are you reacting to them? With tariffs, AD and CVD on A Chinese goods, the Chinese have set up factories in neighboring countries, thereby continuing the availability but at slightly higher prices. More tires will come from the new factories as they ramp up production. The lower-priced products always affect upper-price tiers of the market by creating upward pressure on price point. We are in the upper tier and we must continually work towards our value offerings and distance our- selves from the lower-price segment.

Where do you see the indus- Q try markets heading during the last half of 2019? The farm industry will be af- A fected severely this year. Other segments will continue to be stable. The government will need to inter- vene to stop the bleeding for the farmers, and with it being close to election year, things should change for the better.

What kind of trends are you Q seeing in the marketplace? How is your company reacting to them? The trend is for vehicles to A carry more load, run faster, be maintenance-free and cost-effective. Equipment and tire companies will need to keep up with the pace. BKT keeps up with the changing environment by meeting the needs of the end-customer head on. If the end-customers identify and appreciate what BKT brings to the table, then distributors and dealers will SEE BKT, PAGE 17

*Based on OE replacement for Combined Passenger Car and Light Truck/SUV sizes.

Product images shown are for illustrative purposes only. Technical features, tread pattern design, and tire construction subject to change without notice and can vary by size and application. Exclusive U.S. Distributor of PCR and LT tires. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, June 10, 2019 • 17 Tire Business Special Feature Mid-YearTireReport BKT Yokohama’s products to seize on CUV, UHP popularity CONTINUED FROM PAGE 16 increase their stock levels to keep ndrew Briggs, Yokohama Light-truck tires have been a ma- UHP as a category has actual- placed with a performance upgrade up. The growth is then organic. Tire Corp.’s A jor focal point of our product ini- A ly grown – even as the vehicle in the ADVAN Sport A/S+ this A vice presi- tiatives over the past few years. With trends continue to move towards September. Do you expect to roll out dent of marketing the introduction of the Geolandar CUVs – but this has actually come Q any additional products in and product man- X-AT in July, we will have complete- at the expense of more broad-line What are UHP customers 2019? What will they be and agement, discusses ly turned our LTR line in just a few passenger car products, which Q looking for most in a tire? what sectors will they serve? trends in the UHP years. With seven products address- have allowed both UHP and LTR How has the market changed We bring out 80 to 100 new and CUV/SUV tire ing nearly every need of the total cat- to grow. The growth in UHP has over the past several years? A SKUs a year. We already have market and how Yo- egory, we have one of the newest and been driven by all-season UHP, as By de nition, performance is over 2,500 SKUs and continuously kohama is address- most robust lineups in the industry. speed-rating demands at OE have A still the priority, including wet add more, having the advantage of ing those trends Briggs increased, while other OEMs have and dry grip. The higher up in the our in-house mold factory. with new products. How has the UHP market de-emphasized summer tires in fa- category one goes, the more import- We are adding new sizes and Qfared in light of the prolifer- vor of more balanced performance ant some of the more re ned perfor- patterns in almost all categories How has the car manufac- ation of LT, SUVs and CUVs? Are all-season products. Yokohama has mance attributes, such as noise and like Harvester, IF and VF series ag Q turers’ move to light trucks, you seeing growth and potential served this category successfully comfort, become. On the all-season radials, all-steel radial otation ag, SUV and CUVs impacted your for future growth? Any new inno- with the ADVAN Sport A/S since side, in addition to the above, we see MPT, terminal tractor, underground product mix? vations in the segment? the end of 2014, which will be re- SEE YOKOHAMA , PAGE 21 mining, large OTR, forklift, industrial, scraper OTR, scraper ag and forestry tires. We continuously upgrade and tweak the quality for better performance. The BKT brand is being recognized by end-customers for quality products.

Do you foresee any price Qhikes in the second half of GRAB SOME CASH! the year? So far, the raw material index is A stable. If it changes, then only a $ $ slight adjustment may be required. $ Do you have an advertising $ $ Qprogram strategy? BKT has a very robust and ag- Combines the comfort & A gressive brand advertising program. We are very aware that this ride expected from a touring investment pays dividends in the tire with the crisp handling long run. Our company nancials re ect our commitment towards required by discerning drivers building our brand. We are very watchful of the ever-changing dynamics of the social media fueled Created for diverse American by AI, big data, hybrid clouds, 5G and other technologies. all-season weather conditions, the tire offers What is your online strate- lower weight and reduced Qgy? How is it evolving? We de nitely see the advantage noise while providing A of an online strategy and are exceptional wet braking and gradually increasing our spending in $ year round traction,$ including this segment. The demand of tires in the OTR segment is still slow to be light snow. generated through an online strategy, but the brand remembrance make it necessary for us to be very watchful. 65K mileage warranty It is slowly but surely evolving. $ $ What are some of the chal- Qlenges of the industry going forward? What keeps you up at night? The biggest challenge is deal- A ing with the turmoil created by the political moves of the govern- $ ment. It is unfortunate that government policies affect the economy and the demand of tires. We need some stability from the government side and some fast $ action to meet the crisis that their policies create. Right now, the DOUBLE DOLLARS IN JUNE farmers are hurting big, and there is no help in sight with both parties on the Vezda Touring A/S KR205 unable to meet and come to some $ solutions. That is very worrying. $That means$ more cash, more earnings,$ and more for you and your business this year! $*Double points applies to all sizes of the KR205 tread pattern. Promotion is for dealers enrolled in the Kenda Traction program. The Kenda Traction program is free to enroll at KendaTraction.com. Through Kenda purchases earn cash back and Traction Black Card rewards. Contact your local distributor for more details. $ BKT AgriMAX Teris KendaTraction.com Traction 1 18 • June 10, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com , Tire Business Special Feature Q &A Mid-YearTireReport Kenda addressing shift to CUV/SUV popularity enda Tire USA Inc.’s vice presi- in the industry? How have tariffs and/or anti- Where do you see the indus- segments which offer premium per- dent of automotive, Brandon Even with continuing consol- Q dumping and countervailing Q try markets heading during formance at a value price, with con- K Stotsenburg, said the tire maker A idation at the retailer level, inde- duties affected your company? the last half of 2019? tinued new sizing and patterns in hot began improving its tire size offerings pendent retailers continue to thrive How are you reacting to them? Globally, there appears to be segments like the R/T segment. Our several years ago in anticipation of the in most markets We have product segment A headwinds. The overall U.S./ Klever R/T meets the segment de- OEMs’ vehicle platform shift to light and express op- A sourcing for wheels and tires North American market trends for mands for performance on-road like trucks, CUVs and SUVs. He discussed timism for the globally. The U.S. government’s aftermarket PCR/LTR appear to re- an A/T tire, while performing off-road this and other trends with Tire Business: near term. From actions have required different remain slightly up from 2018, but re- like an M/T tire with aesthetics de- Kenda’s perspec- actions based on the segment and cent, continued tariff announcements signed to stand out for lifted vehicles. How would you describe tive, there is a current sourcing. For PCR and LTR put the overall market trends at risk. Retail stores continue to consol- Q business thus far in 2019? growing interest tires, Kenda has been prepared for idate, but the independent dealer Strong with continued consum- in brand value alternative sourcing to increase the What kind of trends are you channel remains strong; Kenda con- A er increased demand for grow- and desire for supply for our products, while min- Q seeing in the marketplace? How tinues to partner with the indepen- ing CUV and LTR segments. better retail mar- imizing the duty impacts. We are is your company reacting to them? dent dealer as our primary channel gin opportuni- currently positioned to be a strong Continued strength in the LTR for the aftermarket. We have added What are some of the pleas- ties, which is our Stotsenburg value supplier in almost all seg- A and CUV segments — Kenda programs and products to enhance Qant surprises you are seeing strength. ments we service. has new products thriving in these these offerings and more importantly, retailer margin opportunities. There is a growing trend for the All Weather tires which have reasonable mileage expectations and are snowake-certied. Kenda is evaluating BETTER VALUE. to determine the best way to address SMARTER CHOICE. this trend with our channel partners. Online and digital in uence continues to expand, aligned with demo- graphics. Kenda continues to update our communication and promotional YOU AND ALLIANCE TIRE AMERICAS. plans to focus on our Designed for There’s more to working with Alliance Tire Americas than just great margins. Every Alliance, Galaxy and Primex tire is backed up by a global Your Journey message. Additionally, network: R&D, manufacturing, logistics, warehousing, and a nationwide team of ﬁeld engineers, sales reps and customer service specialists our Podium2Pavement messaging for our light truck products has increased committed to your success. our LTR brand recognition with It’s our fast, convenient Warranty Wizard app, and our ATG Online software that makes building and tracking orders a snap. It’s more than 2,000 Kenda competing and winning on SKUs to give your customers—and you—more choices than ever. And if we don’t already make the tire your customers need for a speciﬁc the same DOT tires that our channel application, let us know. We could team up with you to bring something new and innovative to market. partners sell. Kenda has also introduced an Au- Contact your Alliance Tire Americas rep today or call us at (800) 343-3276 to see how Alliance, Galaxy and Primex tires can help thorized Online Retailer program you build your business. to engage this channel’s strengths to grow Kenda sales in a synergistic way with our brick-and-mortar retailers.

What sectors look to be MORE CHOICES. Q strong? Are they sustainable for the future? LTR and UHP remain strong MORE SERVICE. A along with the CUV segment. Within LTR, the off-road and rough terrain segments are both growing with larger diameter (18-inch-plus) over-in- MORE VALUE. dexing relative to market growth. The LTR segment will remain strong as long as the North American economy remains strong; recession will revert back to previous down-market cycles. The CUV segment will continue to be strong with growing of 18-inch-plus diameters over-index- ing moving forward.

What sectors are struggling? Q How soon do you expect them to rebound? Touring and 14-, 15-, 16-inch A sizing; there is some interest with electric tments related to improved rolling resistance helping this segment. However, smaller tires look to be destined for other markets more than North Ameri- ca. Down-market cycles will assist growth of PCR. Government and CAFÉ will drive electric vehicle growth, but not as strongly with current administration initiatives.

Do you expect to roll out Q any additional products in 2019? What will they be and what sector will they serve? We have an initial (seven) new A UTV sizes in our Klever XT pattern which will mirror our outstanding Klever R/T light truck pattern so consumers can have an R/T and UTV match for trucks. CONTINUED ON PAGE 19 Visit us on the web at www.tirebusiness.com TIRE BUSINESS, June 10, 2019 • 19 Tire Business Special Feature Q &A Mid-YearTireReport Tire Business Special Feature

CONTINUED FROM PAGE 18 OE product that the retailer can have ners increased margin opportunities. global – we have a full functioning across several, but not all patterns. We have additional sizing which stronger margin and the consumer compounding lab to develop and de- Properly aligned MSRP and MAP al- will be added to the following patterns: gets a signi cant price savings for Can you provide an update sign speci c new materials to improve low Kenda to communicate our value • UHP all-season: Vezda UHP similar or better performance. Q on the tech center in the performance and lower cost in addition proposition of “Premium Performance KR400 • Kenetica Touring A/S KR217 – Akron area? How many does it to developing Kenda-speci c model- at a Value Price” to our channel part- • All-season CUV: Klever S/T This second generation of our popular employ? What role does it play ing tools to aid development cycle time ners and consumers. It is not the only KR52 Kenetica KR17 standard touring tire with the company? and product design performance; and tools we are using, but we want to pro- • LTR/P-metric: Klever H/T² updated all of the key product needs Our Kenda America Technical • Meeting and education center vide our channel partners with predict- KR600 – better warranty (60,000), aesthetics, ACenter (KATC) has over 40 engi- for our OE and replacement channel able margin opportunities. It is critical • Grand touring: Vezda Touring all-season performance and key siz- neers on staff (and growing) as a key partners. We love to have visitors to that Kenda offers the consumer pricing KR205 ing. Additional orders and re-orders part of Kenda’s global technical excel- educate OEMs, retailers and distribu- which is based on realistic market dy- • New LTR pattern announcement have been tremendous. Again, the only lence. tors about Kenda products. namics as we increase brand awareness. at SEMA downside has been demand exceeding Its primary roles are as follows: initial production capacity. • Design center for new products Do you have a minimum ad- How has the car manufacturers’ Do you foresee any price hikes All of the new products have been for the Americas across all product Qvertised price (MAP)? Have you Q move to light trucks, SUV and Q in the second half of the year? third-party, engineer benchmarked segments; started it? If so, why is it important? CUVs impacted your product mix? Pending market analysis, raw against leading competition in their • Testing center of new products, If not, is that something that is be- Kenda began improving the size A material pricing and U.S. gov- segments. They are designed to sig- OE collaboration, warranty evaluation ing discussed or considered soon? Aofferings and core product devel- ernment decisions regarding tar- ni cantly exceed previous generation and channel partner communication; Yes, Kenda implemented MAP opment several years ago anticipating iffs, countervailing duties and an- performance and offer channel part- • Research center as part of Kenda A on automotive products in May SEE KENDA, PAGE 20 ti-dumping, Kenda may announce price movement. At this time, Ken- da has announced a pass-through of any tariffs imposed by the U.S. on products sourced from China.

Do you expect any major invest- Q ments in the next six months? Kenda continues to invest capital A in our U.S. steel wheel manufacturing to support both our OE and replacement customers. Additionally, there is continued expansion of our tire plants following previous announcements for capacity growth to support our market growth in North America. This is for new capacity and to balance sourcing related to tariffs.

You’ve hired several posi- Q tions over the last couple of months. Has your workforce grown in North America? If so, how much and why? U.S. workforce growth will con- A tinue to support our plans related to our OE and replacement customers. As our new product demand with our distributors and retail replacement channels has been exceptional, we have begun adding eld support to assist growth. Kenda is proud to have several initiatives, including our Au- thorized Online Retailer program, which allows our channel partners to grow with Kenda offering better margin opportunities than other brands. Kenda doesn’t publicly announce speci c personnel numbers, but plans to continue to add the right people as we target growth in automotive, powersports, specialty and bicycle. We are also receiving increased interest in OE product solutions in all of our segments and will add resources as necessary.

What kind of customer re- Qsponse have you received for the second generation of Kenda’s all-season touring tire, the Kenetica Touring A/S KR217? What are the advantages of this product for Kenda? Kenda Automotive has introduced A(three) next-generation core patterns over the past 10 months – update: • Klever R/T KR601 (20 sizes) – market response has been exceptional for a product which has third-party endorsement and bench- marking demonstrating performance that equals or exceeds Tier 1 competition with a near-term OE t- ment coming soon. Our only issue has been to meet demand with faster supply from our Vietnam factory. • Vezda Touring A/S KR205 – This is a true grand touring tire which has allowed Kenda retailers to offer a rst replacement option for 20 • June 10, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Tire Business Special Feature Q &A Mid-YearTireReport has slowed. However, speci c nich- dicates a product which mirrors up- benchmarked. Again, for the price them as “unauthorized” and clearly Kenda es for cars continue to thrive. Some per-tier, summer performance. point offered, this is an exceptional tells the purchaser that the Kenda CONTINUED FROM PAGE 19 CUV platforms now demand V- or • Our KR400 also provides very value not often found and veri ed in warranty is invalidated if they buy the vehicle platform shift to light truck, W-rated products which are trend- good noise levels for both new and a value brand. from an unauthorized source. Our CUV and SUV. Our new products have ing toward UHP. worn performance. Most retailers online channel partners often pro- size coverage which is exceptional in The drivers that Kenda has seen know that UHP tires tend to get very What is your online strategy? vide unique solutions, which can these segments with really strong value relate to consumer expectations with- loud as they wear, with consumers Q How is it evolving? synchronize with our great brick- for the price offered to our channel part- in the segment. There are a lot of often forced to remove early due to Kenda has embraced the online and-mortar retailers. We expect to ners. The market trend for CUV (SUV low-priced, W-rated products which this issue. Kenda provides a real- A shift for consumer education and over-index with growth over the bodies on automobile platforms) growth perform at low levels for a low price. ly strong option that exceeds many the trend for increased willingness to next year. will continue and Kenda has utilized this Ultimately consumers who want the higher-priced competitive options. buy online. We created our Autho- trend to drive 18-inch-plus size growth. “look” and a Z-rating can be tempt- • Exceptional wet/all-season han- rized Online Retailer program which What are some of the chal- ed to buy these products. Kenda has dling and braking for a UHP tire — identi es online retail partners at ken- Q lenges of the industry going How has the UHP market fared focused on delivering several key wet performance is usually a strong datire.com. These folks have access forward? What keeps you up at Q in light of the proliferation of LT, performance features not typically differentiator from low-priced prod- to our technical information to assist night? SUVs and CUVs? Are you seeing growth found in a value-priced product: ucts to real UHP tires. Kenda deliv- them to target their customers and The continued channel consol- and potential for future growth? Any • Our Vezda UHP KR400 pro- ers these performance features at a provide the best information to assure Aidation at both retail and whole- new innovations in the segment? vides AA traction for an all-season premium level for a value price. proper applications in a market with sale combined with an increasing The relative growth of the past tire. Very few all-season UHP tires • KR400 offers a 50,000-mileage growing complexity. If an online re- inuence of private equity continues A ve to 10 years for UHP PCR truly provide this bene t and it in- warranty which has been third-party tailer is not listed, Kenda will identify to change the relationships between manufacturers and channel partners. Kenda believes the strength of the independent channel continues to provide unique opportunities for small business and entrepreneurs not available in most industries. We want CONTACT YOUR LOCAL MAXXIS to be a partner with exceptional communication and visibility to our part- TIRES DISTRIBUTOR TO GET ners to provide winning solutions as SIGNED UP TODAY this evolution continues. The fundamental shift toward eet solutions and reduced reliance on individual vehicle ownership funda- mentally changes the performance needs for mass market vehicles. This will require different product solutions as well as service and supply chain revisions to current models. It is not a question of if this will happen, but the timing for the ongoing shift. Aligned with this shift will be in- ASSOCIATE DEALER PROGRAM creasing global moves toward electric and autonomous platforms. The need to have better wear with improved rolling resistance will drive this tire trend. Global solutions will have advantage over regional solutions. A Powerful new Program to ACCELERATE Profits The unpredictability of government actions with the recent growing With the Maxxis Accelerate program working for you, your business will gain a trend toward tariffs has created a dif- strong competitive edge in a marketplace that rewards value. A brand born of cult environment to assure return on capital investment. Kenda will performance, Maxxis supports your ability to build profit with a product line continue to execute on its overall global growth plan, but recent actions you can be proud to offer. often create unexpected costs and work, which erodes our mission to As a Maxxis Accelerate dealer, you will have unlimited access to the support of serve our customers.

a Global Tire Manufacturing leader. Sign up and accelerate your success today! Is there anything else you Q would like to add? Kenda has been putting in- • Dealer Locator Acreased emphasis on its brand exposure and experiential marketing • Monthly and Quarterly Retail Promotions to demonstrate the value of its sec- • Maxxis Branded Point of Sale materials ond-generation products. We active- • Quarterly and Annual Bonus rewards ly partner with third-party engineering companies to objectively test and • Maxxis Wearables and promotional Items communicate the value as they see it. Kenda continues to push experience in the light truck segment where www.maxxisaccelerate.com consumers are doing extended research online and in person. For example, we offer several weeks of a light truck boot camp in the fall where channel partners get several days of education and product experience in- teracting with Kenda engineers, sales team and Lucas Oil drivers. Additionally, Kenda will continue its Podium2Pavement message which highlights DOT products competing against premium competitors and winning. Kenda will defend its Pro 2 cham- 0000 0000 0000 0000 pionship this summer in the Lucas Oil Midwest Short Course off-road Maxxis Authorized Dealer racing on the same Klever M/Ts and R/Ts that our channel partners sell to consumers every day. Tire Business Special Feature Mid-YearTireReport

Visit us on the web at www.tirebusiness.com TIRE BUSINESS, June 10, 2019 • 21 Tire Business Special Feature Q &A Mid-YearTireReport Weller: Tariffs, duties have had little effect on CMA ariffs and antidumping/coun- offer high quality tires at a reasonable owner operators will not retread. We believe there will be shortages have a better chance of earlier adop- tervailing duties on TBR tires price as we have in the past. We have The answer is because the in- A of TBR tires in 2019. The timing tion by the market in our opinion. Thave caused great volatility for a strong brand and fantastic custom- dustry has done nothing to address is the issue, so to what extent this will many tire makers, especially those ers who have committed to us and we their unique needs. occur is difcult to answer. We also Do you expect to roll out based in China. to them. We are focusing on making It is counterintuitive to think that believe that we are uniquely positioned Q any more products in 2019? Walter Weller, se- sure we are able to supply our existing these customers would not retread if to satisfy the needs of our customers We have been very active in roll- nior vice president customers’ needs going forward. the economics overwhelmingly sup- so they need not be overly concerned. A ing out new products in 2018 and at China Manu- ported the case for retreading, which will continue that in 2019 and beyond. facturers Alliance What advice would you it does. Where do you see the In the TBR segment we have some L.L.C., the North Q give a dealer in North Q industry markets heading new drive tires, new wide-base tires American subsidi- America who is concerned What kind of effect have during the last half of 2019? in both 65 and 50/55 series, new off ary of Double Coin about prices and/or supply? Q tariffs had on production? OE, both tractor and trailer, re- highway/severe service tires, new tires Holdings Ltd., dis- Prices will be determined by supply As far as U.S. production as a A mains strong. We feel it will con- designed specically for intermodal cussed this issue, Weller A and demand and the marketplace. A whole, the answer is there has tinue that way into 2020. The replace- service, tires designed for waste haul- among others, with Tire Business. Align yourselves with a supplier or sup- been little to no effect. The OE mar- ment market will depend on freight ers and we are relaunching our ROTR pliers who have the ability to meet yours ket continues to be exceptionally tonnage, which in spite of all the predic- and RIND products for construction How would you describe and your customers’ needs. strong with no signs of easing up. tions to the contrary, is still strong. and earthmover markets. Q business thus far in 2019? Offering the lowest price is not The replacement market is down Freight pricing power remains With the huge in ux of product always, if ever, a good marketing some but should recover a bit, but the strong and drivers’ wages have been Do you expect any invest- A in December 2018 due to the strategy. A better strategy is align- replacement market will still be pre- increasing well beyond other indus- Q ments in the next six months? potential implementation of the sec- ing your business with strong brands dominantly supplied by imports from tries in reaction to the driver short- I do not foresee any major in- ond part (15 percent) of the Section that are committed to the market with both domestic manufacturers as well as age, which we see as a good thing. A vestments in the U.S. from 301 tariff and the confusion caused people, warehousing, high quality import manufacturers. Our view is that The trend line overall is up. the domestic manufacturers. Double by the sudden implementation of the products that retread and represent a total imports will represent almost 50 Freight companies are continu- Coin continues to make investments antidumping/countervailing duties in good value to the end-user. percent of the replacement market. Chi- ing to try to address the “last mile” in both China and Thailand. February, and then the actual imple- nese manufacturers are reportedly down or Amazon effect, which over time mentation of the second half of the What steps is Double Coin by 5-8 percent so far in 2019. will have a large effect as a trend What are some of the chal- Section 301 tariff recently, customers Q taking to get its message to be watched. AI and autonomous Q lenges going forward? either had huge inventory or were con- out to those who make policy on Will there be a shortage vehicles are still many years from Finding and developing good cerned about bringing in inventory tariffs and its effects? Q of TBR tires because of the being adopted but should be mon- A people to lead our company and due to uncertainty in the market. We have been very active within tariffs and duties? itored. LNG and electric vehicles the industry. A the industry at trade shows and What pleasant surprises are directly involved in government hear- Q you seeing in the industry? ings etc. countering those that attempt I wouldn’t say it is either pleas- to paint all products from Asia as low- A ant or a surprise but the tariffs cost, low-quality products as the (Unit- and duties do appear to have had an ed Steelworkers) has tried to do. affect on tires coming from China. The AD/CVD duties, while well- meaning, we believe will create short- How have tariffs and/or anti- ages and end up hurting the industry Q dumping and countervailing and the end-users in the long run. duties affected your company? The retread industry has blamed We were already transitioning the stagnant growth of retreading on A to other sources of supply so the these tires instead of looking to an- tariffs/duties have not had much of an swer the question of why so many affect on us. We plan to continue to small-, medium-size eets as well as

vs. the predecessor products, along Yokohama with additional sizes. Finally, we’ll be CONTINUED FROM PAGE 17 releasing two new winter tires for pas- the importance of winter traction as senger cars – the iceGuard iG53 – and well as mileage moving up the pri- for light trucks, the iceGuard G075. ority rank as consumers in all cate- With these introductions, we’ll ad- gories expect more from their tires. dress nearly every aspect of the market as we continue to manage our product Do you expect to roll out any lifecycles and look for incremental op- Q additional products in 2019? portunities in underserved categories. We’re launching quite a few prod- A ucts in 2019 – nine to be exact – Do you foresee any price hikes serving light truck, high performance Q in the last half of the year? and passenger car. To begin, in April we It’s denitely possible later this activated our latest generation high-per- Ayear. As tread counts and the pro- formance summer tire, the ADVAN liferation of SKUs continues to increase, V701, which replaces our S.drive line; a service level expectations are at an all- new track and competition tire, the AD- time high. Additionally, promotional VAN A052, which will set a new bar in spending and marketing budgets are ex- the category; and our Geolandar X-CV, pected to increase collectively, creating which is an all-season CUV/SUV tire an increase in the overall cost of doing intended for performance and luxury business. Recently, manufacturers have CUVs and SUVs. become much better operationally, but This will be followed by the launch these costs continue to rise. of our Geolandar X-AT in July, which will occupy the space between our tra- Do you have a minimum ditional Geolandar A/T G015 and our Q advertised price (MAP)? Why Geolandar M/T. is it important? In August, we will bring our ADVAN Yes, our MAP policy went into Apex to market, which will be our U.S. Aeffect on February 1. It was im- agship UHP summer tire designed and portant that we established this policy developed with the replacement needs of to maintain the integrity and premium the U.S. market in mind. stats of Yokohama products. Addition- In September, our AVID Ascend will ally, it is of paramount importance that be replaced by the all-new AVID As- we continue to support the strong cus- cend LX and our ADVAN Sport A/S tomer service efforts of our authorized will be replaced by the upgraded AD- distribution and resale network by dis- VAN Sport A/S+. Both tires represent couraging price-based advertising that signicant performance upgrades undermines such efforts. 22 • June 10, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Tire Business Special Feature Q &A Mid-YearTireReport Apollo developing brand, sales strategy for N.A. market orth America continues to be Apollo Vredestein recent- Can you update the status of Do you expect any major invest- How has the UHP market a priority for Apollo Tyres Q ly launched the Quatrac Q your fth plant, in Andhra, Q ments in the next six months? Q fared in light of the prolifera- N Ltd. as it continues to develop Pro, your rst all-weather tire India? What is the timeline? The management has earmarked a tion of LT, SUVs and CUVs? products speci cally for that mar- designed for the UHP segment. Currently, the company has four Asizable budget for the development The LT, SUV and CUV space is show- ket. The India-based tire maker dis- What is the main benet of this Amanufacturing facilities in India of seven product lines catering to the ing a higher growth rate, led by growth cussed its strategy moving forward product? Is this an area the com- — two (including a leased facility) in American market. We are con dent of CUVs. Also, we see the LT and SUV with Tire Business. pany has targeted for growth? Kerala, and one each in Gujarat and that with the investment planned, segments as a big growth opportunity for The Quatrac Pro is the rst tire that Tamil Nadu. The company is investing including marketing spend and the the company and product development is How would you describe Ahas been tested and tuned for the in another Green eld plant in Andhra product offerings, we will aggressive- under way for these segments. Q business thus far in 2019? North America market. With the intro- Pradesh to further strengthen its market ly reach out to the dealer community Business for 2019 has been stable. It duction of Quatrac Pro, we are offering share in India. The project continues on and to the consumers about the superi- What is your online strategy? A is going as per our yearly plan. customers driving on UHP tires a product track and is expected to go on-stream or value proposition being offered by Q How is it evolving? that is speci cally for their requirement. towards the end of 2019. the company. For the U.S. market, we see dig- How have tariffs and/or anti- The all-weather is an interesting seg- A ital/online forming the center of Q dumping and countervailing ment of the company. We’ve been one Does North America remain a Do you have a minimum our marketing communication strate- duties affected your company? of the few brands offering an all-weather Qpriority? Q advertised price (MAP)? gy. We are working on this strategy How are you reacting to them? proposition for the last many years. Un- North America will be an import- We believe in the philosophy of and will be rolling it out soon. From The North American operation like, all-season tires, all-weather tires A ant market for the company. We A“pro table growth” for us and an online sales perspective, we are A for Apollo Tyres gets its prod- stay soft and give grip at temperatures are put this in place a team to grow our our various stakeholders, including not looking at exploring that possibil- ucts from its manufacturing facilities above and below 7C, so they’ve become presence in the U.S. over the next few our channel partners. We have been ity. Our focus remains on building a in the Netherlands and Hungary and a popular year-round tire in cities like years. We are working on brand and building our dealer network with peo- strong dealer community. hence imports and tariffs haven’t af- Boston, Chicago, Toronto and Vancou- sales strategy, focused on identifying ple who are in alignment with this way fected us. ver, where drivers need tires to get them the right product tment for the market of working. In India and Europe, we Is there anything else you’d through mountain passes and to ski hills and these are being productionized and have seen that long-term relationships Q like to add? Do you expect to roll out any on weekends. soon launched in the market. are the key for our combined success The company has a two-pronged Q additional products in 2019? The other option for the customers is and will replicate a similar model in A growth strategy of investing in build- The year 2019 is a critical year for to change between winter and all sea- Do you foresee building a this market. At our current stage of ing our brand, and upping our techno- A the company’s North American son / summer tires or have all-weather Q U.S. plant in the future? business, a MAP may be restrictive logical prowess continues. It is gradually operation. Over the past three years, the tires year around. We are seeing a good We are focusing on the Hunga- and may not allow us to react swiftly to increasing its R&D spends to come up company has had a small team working traction in Canada, northern parts of A ry plant and later on our Andhra business opportunities. with technologically superior products on de ning its product strategy, working America and many states in the US with Pradesh plant and want to get them to a in various segments; this is also helping with its global R&D centers based out mountain ranges. similar capacity utilization levels like How has the car manufacturers’ it with incremental OE contracts, both in of India and the Netherlands to develop those of our other plants. We will decide Qmove to light trucks, SUV and India and Europe. Its spending on R&D is product lines speci cally for the North Can you provide an update on the next course of actions after we have CUVs impacted your product mix? the highest in the industry in India, which American market. Q on the plant in Hungary? achieved these priorities. While some of our CUV sizes is close to 2.5 percent of its sales. Apollo Tyres is planning to introduce How is production of truck tires A are extremely high in demand, From the R&D perspective, we have two products in the second half of 2019. progressing? Do you foresee any price hikes we are yet to see a signi cant impact a dedicated team focused on North The products to be introduced are for The production in the Hungary plant Q in the second half of the year? on the composition of the industry by America product development. All the the PCT UHP AS and PCT HP, CUV A is as per schedule. The company is The company does not foresee any the move by car manufacturers shift to products to be launched in the U.S. mar- AS segments. We continue working con dent that its European and North A price hikes. However, if there are light trucks, SUV and CUVs. The PCT ket are being extensively tested locally with our global R&D teams and have American operations will show a strong changes in the external environment, we market is still over 50 percent of re- in North America — both on test tracks planned to introduce multiple products performance in the current year on the will evaluate and take decisions accord- placement potential, and we do not see and on the ground to ensure that we have in the coming 18-24 months. back of increased supplies from Hungary. ingly. a change in this for the next few years. the right products for the market. Conti testing ‘Pitstop’ prognostics platform TORONTO Continental A.G. is running a pilot test program with Ansik Inc., a To- ronto-based startup that’s developing a platform under the Pitstop name for predicting vehicle failures before they happen. The pilot program combines ca- pabilities of the Pitstop Data Engine in this industry. with Continental’s Remote Vehi- “As business models move from cle Data (RVD) Platform to pro- products to services, Pitstop is excit- vide real-time, actionable insights ed about exploring the opportunities through a dashboard and mobile presented by combining Continen- application, Pitstop said. tal’s RVD Platform with our analytics FEATURES The company claims the combined solution, to help our clients navigate data and prognostics tool can predict the changing transportation industry.” 12’ Tire Service Truck (other sizes available) Work lights Strobes in front and rear Hose reel | | | failures and prevent inef ciencies, Christopher Bahlman, head of (2)36” and (2)48” Toolboxes | 1600lb Tire rack liftgate | Champion gas air compressor which can help reduce maintenance diagnostics and services for the In- costs faced by the automotive industry. dependent Aftermarket segment of The Pitstop prognostics platform Continental’s Commercial Vehicles aggregates automotive data and & Aftermarket Business Unit in sends the information to a secure North America, said: “Continental remote server where algorithms, is excited to be working with Pitstop arti cial intelligence and machine on the opportunities that combining learning tools provide useful infor- Pitstop’s analytics platform with mation about increasingly complex Continental’s RVD platform can automotive systems. bring to the automotive industry.” Noting that the value of the con- Pitstop, a cloud-based automotive nected global car market is expect- prognostic platform, also disclosed ed to reach $280 billion by 2026, it has received $1.5 million in seed Pitstop founder and CEO Shiva nancing from Toronto-based VC Bhardwaj said, “… we are seeing fund Ripple Ventures with partici- predictive analytics play a vital role pation from WorldQuant Ventures, www.smyrnatruck.com I 855-269-5347 I [email protected] in reducing unexpected downtime Hike VC, OCE, and MD from and costs for businesses operating Clairvest Michael Castellarin. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, June 10, 2019 • 23 Tire Business Special Feature Mid-YearTireReport take this approach. We said, let’s get Nexen out to dealers ... so dealers have to CONTINUED FROM PAGE 1 speak on the tire.” company is and where it intends to be. The Rodian AT Pro RA8 also was “Hopefully they leave here with designed to go after the Tier 1s, Mr. what they came with: Con dence in Hagan said, at a lower price point. Nexen, con dence in the direction “It just keeps on growing double where we are going and con dence we digits every year,” he said. “It’s been will take care of them through thick very good for us.” and thin, no matter what,” said Mr. Nexen recently forged a part- Hagan, who has been part of the tire nership with TBC Corp., which industry for more than three decades. includes wholesale and retail loca- “Our No. 1 goal is to try and have tions. a consistent relationship, but also a y Investment in North America supportive one. A lot of these dealers, and abroad. if not all of them, come to the table In the last year, Nexen opened a knowing that you throw the problem $1 billion tire plant in Zatec, Czech on the table, you work the problem. Republic, that will supply Europe

Sometimes you win, sometimes you and other areas abroad. Tire Business photos by Don Detore lose, but at the end of the day, we’re While the plant won’t produce Michael J. Brown (left) of the Robert Mondavi Winery in Napa, Calif., ex- here for each other to be successful.” units for North America, Mr. Ha- plains the wine-making process, as Jong Sun Kim, CEO of Nexen Tire Amer- When Mr. Hagan joined Nexen at gan said it would free up capacity at ica Inc., and In Kuyang Kim look on. the end of 2016 — after a career that Nexen’s two plants in South Korea. Nexen has tments with Hyun- John Hagan, executive vice president, included stops at Linglong Tire Co. And that’s important, he said, to help dai Motor Co., Kia Motors Corp., sales, of Nexen Tire America Inc., ad- Ltd., Kumho Tire Co. Inc., Toyo Tire dresses dealers during a dealer appre- maintain the company’s ll rates, Honda Motor Co. and Fiat Chrys- & Rubber Co. Ltd. and Pirelli Tire ciation event held in Napa, Calif. which he said are north of 95 percent. ler Automobiles in North America L.L.C. — he said he found some com- In fact, he said the company only re- and in Europe with, among others, placency and a sense of entitlement. y Strong products. cently initiated a back-order system. Volkswagen A.G. , Audi A.G., Mer- “We pretty much switched it out Mr. Hagan told dealers that since “There is no need to have a sys- cedes-Benz A.G. and Porsche A.G. where everyone is held accountable 2000, Nexen has sold 395 million tem before,” Mr. Hagan said. “I In fact, the tire maker said it has t- for everything they do,” Mr. Hagan units without a recall. could argue there is no need now. ments with 152 total models global- said. “It’s instilled in their mind He mentioned three products as We have two warehouses, and if we ly, including 32 in the U.S. hopefully that accountability is the standard bearers: The N Priz AH8 can have a back-order system that yy Its Associate Dealer program. key to everything,” grand touring all-season tire; the Ro- can help us and get as close to 100 Mr. Hagan said the program took Today, he said, employees who dian MTX mud-terrain tire; and the percent as possible, it makes us bet- shape in 2008 and is beginning to provide sales forecasts must stand Rodian AT Pro RA8 all-terrain tire. ter in the long run.” take off this year. by those numbers. They review data The N Priz AH8, which debuted Nexen has inaugurated a 613,000- “We created a strong, simplistic tire maker and its dealers. He said daily, monitoring what was deliv- in 2017, is available in 59 sizes, in sq.-ft. central research center in program,” he said. “... It’s consistent, the goal is to respond to any issue ered and what wasn’t. 14 to 19-inch rim diameters, and it Seoul that will become the compa- it’s fair, and it enables growth.” within 24 hours. “The sales team is always trying to features a 70,000-mile treadwear ny’s hub for its R&D centers in the He said many other programs He likened the relationship to a learn from yesterday,” he said. “We’ve warranty. “The thing just runs,” Mr. U.S., Europe and China. “are just worried about growth, wor- marriage. done a very good job of learning from Hagan said. “There’s nothing nega- The tire maker invested $178 mil- ried about you’re buy in. I don’t be- “Throw the problem on the table, the past to help build our future.” tive about that.” lion over two years in the center, lieve there is another program that let’s look at it and nd a solution,” Most recently, he hired another The Roadian MTX, launched at called “Nexen UniverCity.” The struc- actually goes soup to nuts.” he said. “Let’s be big, and if there industry veteran, Megan Wentz, as the 2017 Specialty Equipment Mar- ture stands eight stories tall with two Mr. Hagan said the software for is no solution, let’s move on. We go marketing manager. ket Association (SEMA) Show in additional stories underground and Nexen’s Associate Dealer program is in with this attitude: We’ve always “We’ve talked over and over about Las Vegas, can “run with the big consumes an entire block in Seoul. built to include direct-to-consumers found a solution.” creating some continuity, consistency dogs,” Mr. Hagan said, referring to It also is putting the nishing touch- sales. But, he said, that won’t happen. Mr. Hagen said Nexen was once and longevity, with our planning,” Ms. the Tier 1 manufacturers. es on a North American R&D center “We have dealers. We have distri- consider a low Tier 2 or Tier 3 prod- Wentz said. “The big priority with me “We priced it competitively with in Rich eld, Ohio, just north of Akron. bution,” he said. “We support that. uct. Today, he asserts, it remains a is making sure this plan is for the next the value that speaks for itself,” he The tech centers, he said, are They’re the ones that should be (sell- strong Tier 2, a diamond in the rough. ve or seven years and beyond.” said. “But like any tire manufactur- helping to boost Nexen’s burgeon- ing tires).” “We have been, for years, ying un- Mr. Hagan attributed Nexen’s er, when you introduce a new line, ing original equipment business, Mr. Hagan said it’s extremely im- der the radar,” he said. “I think 2019 is resurgence to a variety of factors. you want to go from zero to a mil- which increased to 3.5 million units portant for Nexen to keep the lines the year we don’t y under the radar They include: lion. With this segment, we didn’t in 2018 from 600,000 in 2013. of communication open between the anymore. ... We’re in the air.” Toyo’s Q1 sales, earnings fall; forecast unchanged

HYOGO, Japan When it comes to braking, every foot is worth a Toyo Tire Corp. reported lower MAX mile. In a recent 60–0 mph wet braking test, the sales and earnings for the quar- Maxtour LX stopped shorter than the competition. ter ended March 31 as the compa- Introducing the GT Radial ny’s business in Japan and in world Maxtour LX. markets other than North America waned. STOP Operating earnings fell 4 percent 8 to $92.5 million on 3.8 percent lower 132. FT sales of $821.9 million, Toyo report- MAXTOUR LX ed. During the quarter, Toyo took a to 19.6 percent or 9 million tires one-time extraordinary loss of $17 shipped during the quarter, from All-Season Performance million related to its rubber seismic 17.4 percent a year ago; commen- isolation products business, reducing surately, replacement market ship- Premium Ride Comfort net income 16.2 percent to $51.2 mil- ments slipped to 80.4 percent of the LEADING lion. total. COMPETITOR C 42 Sizes on Popularopular Fitments Toyo reported sales drops of 7.2 The extraordinary loss pertains to percent and 12.2 percent respective- sub-standard seismic isolation bear- 7 70,000 Mile Tread Warranty 140. FT ly, in Japan and “other” international ings the company sold in 2015. The 24/7 Roadside Assistance markets, which offset a 2.1 percent loss relates to potential claims still increase in sales in North America, outstanding related to products and LEADING to nearly $420 million. their installation. COMPETITOR B All trademarks, service marks and product names are the property of their respective owners. Test conducted in Q1 of 2019. Tires Toyo’s tire business unit suffered For the full scal year, Toyo said LEADING 5 tested were size 215/55R17. Individual results an 8.3 percent drop in operating there is no change from the forecast COMPETITOR A 143. FT may vary depending on vehicle type, tire income, to $95.8 million, on 2.5 issued in mid-February — operat- maintenance, driving style, and road conditions. percent lower sales of $716 million. ing earnings to slip 5.6 percent ver- 3 144. FT Toyo reported a slight change in sus scal 2018 on 1.7 percent higher Visit MaxtourLX.com and experience the performance. the sales mix, with OE sales rising sales. 24 • June 10, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Michelin inks JV agreement ATD realigns senior to repurpose Dundee tire site leadership team By Don Detore our sales and supply chain operations European Rubber Journal Report [email protected] and to deliver ATD’s unparalleled DUNDEE, Scotland HUNTERSVILLE, N.C. customer experience and the broad- Group Michelin has signed a joint venture agreement The names are the same, but the est assortment of tires, wheels and to build an innovation center on the site of its soon-to- some of the responsibilities will shop supplies,” ATD said. close tire plant at Baldovie in Dundee. change for the leadership team at Mr. Schiano, who joined the Called Michelin Scotland Innovation Parc (MSIP) American Tire Distributors Inc. company in 2016 after holding var- Ltd., the JV with Scottish Enterprise and Dundee City (ATD). ious management positions at U.S. Council will repurpose the site to focus on sustain- North America’s largest tire dis- Foods, will continue to oversee able-mobility and low-carbon energy developments. tributor has promoted a number of ATD’s corporate, strategic, cus- The agreement, signed May 31, rms up proposals to key employees in a realignment it tomer service and specialty sales secure a future for the 845-employee site, after Michelin says “reects the company’s evo- teams, in addition to Tire Pros and announced in November that it would cease the tire pro- lution to date,” while accelerating supply chain operations. duction there in 2020. From left, Steve Dunlop, Jerome Monsaingeon, economy the “company’s ongoing transfor- In his new role, Mr. Calcagno, “By incorporating MSIP Ltd., we are taking a rst secretary Derek Mackay and councillor John Alexander mation to becoming the most con- formerly chief marketing and mer- concrete step in delivering against our shared ambitions sign the agreement to repurpose the Dundee tire plant. nected and insightful automotive chandising of cer, will focus on of providing employment opportunities for our work- solutions provider in the industry.” merchandising and marketing in force,” said Jerome Monsaingeon, Michelin’s represen- panies, research institutions and highly skilled people. Among the changes are: conjunction with ATD’s manufac- tative on the JV board. Scotland’s economy secretary Derek Mackay said MSIP yy Owen Schiano to chief oper- turing partners to help customers. The project will create “a agship innovation center in would create new employment and investment opportunities for ating of cer, a newly created posi- Mr. Calcagno, who has been with Dundee (that will place) Scotland at the forefront in the Dundee and demonstrate Michelin’s commitment to the region. tion; ATD since 2003, will continue to ght against climate change,” Mr. Monsaingeon said. “The Scottish Government will continue to do all we y Keith Calcagno to chief oversee the development of ATD’s The partners believe that the innovation center can can to realize these ambitious plans, which will provide merchant and strategy of cer, a transformation strategy and the com- become a global center for innovation, attracting com- Dundee with a rst-class innovation center,” he added. newly created position; and pany’s project management of ce, yy Chief Digital and Technol- which the company said is focused ogy Of cer Ivy Chin was given on driving ef ciencies and speed- South Korean students team judged best additional responsibilities to unify to-market for strategic initiatives for the rm’s technology and digital ATD customers and suppliers. in Michelin Challenge Design competition ecosystems. Ms. Chin, who joined ATD near- The moves are effective imme- ly a year ago, will focus on unifying GREENVILLE, S.C. from more than 1,500 entrants rep- diately. ATD’s technology and digital ecosys- A team of university students resenting 71 countries. In the past 19 ATD said the changes are not the tems, including the business-to-con- from South Korea has won the 2019 years, Michelin Challenge Design result of restructuring done last year sumer TireBuyer.com platform. Michelin Challenge Design compe- has received more than 14,000 en- in the wake of nancial dif culties, Ms. Chin, who previously was a tition, “Inspiring Mobility,” which tries from 134 countries. but rather represent “our progressive digital vice president at PetSmart challenged participants to design Representatives from the rst-, advancement in our evolution” and Inc. and Belk Inc., will continue a mobility solution that will evoke second- and third-place winners were “the continuing advancement we’re to develop digital tools in order to a personal connection around joy, scheduled to appear at the “Mov- making in our strategy for our busi- “deliver an unsurpassed, digitally trust, security or freedom for inhab- in’On Summit,” the global sustain- ness and our vision for the industry.” enabled associate and customer ex- itants of major metro areas in 2035. able mobility event being held June ATD CEO and President Stuart perience,” ATD said. The winners — Jintae Tak, Minseok 4-6 in Montreal. Schuette said the changes “are de- “Our associates have been essen- Choi, Doohee Lee and Joonyong Lee “The discussion that we are hear- signed to propel ATD forward and tial to sustaining ATD’s performance of Kookmin University College of ing in the mobility sector is primari- accelerate execution towards our in the face of unprecedented industry Design — submitted an idea dubbed ly around technology. We wanted to strategy. We’re very proud of the change,” Mr. Schuette said. “Togeth- “Depot,” which offers citizens of use Michelin Challenge Design as a team at ATD and the collective tal- er with their teams, they have driven Berlin in 2035 a mobile conveyance catalyst — a way to get to the root ent that has become unique for us our strategy with excellence and pas- that can double as a pop-up-style in- emotion and core question that we in the industry.” sion,” Mr. Schuette said. dividual space. want that technology to answer,” Ben Mr. Schiano, previously presi- “These changes accelerate the The Challenge Design competi- Ebel, lead user experience designer, dent, U.S. eld operations, now will company’s ongoing transformation to tion suggested the cities of Berlin, Michelin North America Inc., said. lead ATD’s U.S. eld sales team and becoming the most connected and in- Mumbai, New York, São Paulo and “That is a very underserved part of the company’s supply chain opera- sightful automotive solutions provider Shanghai as the targeted metropolis- A South Korean group of students the mobility discussion. tions across North America. in the industry,” the company said. es for the participants’ design entries. won the 2019 Michelin Challenge “We’ve forgotten about the jour- ATD said melding these functions ATD has around 5,000 employ- Created by Michelin Group in Design competition. ney,” Mr. Ebel said. is a natural step for ATD, “designed ees, about the same as it did last 2001 to encourage and recognize Second place went to Robert “Whenever we talk about mobili- to create further synergy between year after its restructuring. the global design community, Mi- Crick of London for his design entry ty, it’s all about ef ciency and move- chelin Challenge Design has be- “Renault Fold,” and third place to ment. Whether it be people or boxes. come recognized as a prestigious Junghyun Kim and Hanum Jeong of In fact, a lot of multimodal systems design competition, thanks in part Seoul, South Korea, for their entry don’t differentiate between these two. to its jury members, who are often “Volvo Intersection.” What we are seeing here, in these en- the advanced design leaders for ma- The three winning designs and tries, is a different vision that forces jor auto makers. 12 nalists were chosen by the jury you to humanize the experience.” RNR CONTINUED FROM PAGE 3 yy Tammy Niederhelman of Carl Junction, Mo., received her car at RNR’s Joplin, Mo., store. She lost her Schiano Calcagno Chin child in the 2011 Joplin tornado but later wanted to become a foster parent for children in need of a home in her area. Inc., a Chandler, Ariz.-based “ground She has fostered several children and over the six years of Goodyear mobility” company, and Sales-Lentz fostering children, she has adopted four children. CONTINUED FROM PAGE 3 Group S.A. of Luxembourg. yy Carol Vangilder of Red eld, Ark., was awarded her proprietary arti cial intelligence The deal with Local Motors in- car at RNR’s Little Rock, Ark., location. Her nomination technology to predict maintenance. volves the Arizona company’s Olli was submitted by her daughter and son, who noted her long Then the system automatically eight-passenger autonomous shuttle list of community involvement and caring for the elderly schedules service, which is done us- vehicles, which are capable of oper- despite her own medical needs. Her story involved seless Carol Vangilder of Red eld, Ark., was among three ing the tire maker’s outlets and mobile ating at speeds up to 25 mph with a service to friends, family and strangers. women who were awarded a new car from RNR. vans, which are dispatched to install range of up to 40 miles, depending yy Jennifer Wheeler of Tampa, received a Ford Fu- tires onsite at their charging stations, on load. sion. “I am so thankful for this honor,” said Ms. Wheel- who gave all she had to provide a good life for her and thus maintaining vehicle safety. Goodyear will supply Local Mo- er. “This Ford Fusion will help tremendously, with my- her children. It’s an honor to positively impact the lives In February, Goodyear struck tire tors with an exclusive tire tment — self and my family and what I do to help others in the of the hardworking moms across the nation,” said Lar- supply deals with two autonomous which it declined to identify — for community. There are so many opportunities to help ry Sutton, founder and president of RNR Tire Express. vehicle developers that it hopes will Olli vehicles with an eye toward col- people and this is de nitely going to help me do it!” “Mothers give everything they have to support their yield insight into tire development lecting data on the operational and “At RNR, we value philanthropy and giving back. As children and unfortunately, the world sometimes repays for AVs. maintenance needs of tires tted on David, I too was raised by a hardworking, single mom them with harsh life challenges and roadblocks.” The deals are with Local Motors driverless vehicles. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, June 10, 2019 • 25

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gin on Monday, with monthly in- nadian and Mexican steel and alu- for government relations at the Na- gering USMCA rati cation. Tariffs creases as per schedule.” minum would end after 14 months. tional Retail Federation, said tariffs The National Association of Man- CONTINUED FROM PAGE 1 Mexico is the largest trading part- That move was universally seen as an on Mexican goods would raise the ufacturers (NAM) said it agreed pledge of President Trump’s and ner of the U.S., with trade last year effort to speed approval of the USMCA, cost of living for American families. with the Trump administration on what could be a big victory for this valued at $346.5 billion. A 5-per- as well as a boon to manufacturers and “Forcing Americans to pay more the need for immigration reform, country.” cent tariff on that amount of trade consumers in all three countries. for produce, electronics, auto parts but said retaliatory tariffs were the In his May 30 tweet, President generates up to $17 billion in duties. Therefore, the announcement of and clothes isn’t the answer to the wrong way to accomplish it. Trump said the U.S. would begin The U.S. and Mexico have a ro- the new tariffs on Mexico stunned nation’s immigration challenges, “Intertwining dif cult trade, tar- placing a 5-percent tariff on all goods bust trade in tires, according to U.S. business associations. and this certainly won’t help move iff and immigration issues creates entering from Mexico. U.S. Department of Commerce data. The Motor & Equipment Manufac- USMCA forward,” Mr. French said. a Molotov cocktail of policy, and Those tariffs would be raised 5 Mexico is the U.S.’s No. 2 tire sector turers Association (MEMA), which The American Chemistry Coun- America’s manufacturing workers percent over the next four months, export destination, taking in $1.64 has consistently opposed tariffs, said cil noted that $543 million worth should not be forced to suffer be- to a maximum of 25 percent, and billion worth of U.S.-produced tires imposing tariffs on Mexican goods of chemical products cross the cause of the failure to x our immi- remain at the 25-percent level until and tire-related products last year. would not create a more secure border. U.S.-Mexico border every week. gration system,” said NAM Presi- Mexico took major action to curb il- In return, the U.S. imported $920.8 Instead, such tariffs “will only “A tax on all imports from Mex- dent and CEO Jay Timmons. legal immigration, the president said. million, resulting in a trade surplus serve as an additional tax on the ico, followed by Mexico’s likely re- Mexican trade of cials held emer- Tweeting from Normandy, where of $723.8 million. American people by increasing taliation on U.S. chemicals exports, gency talks with U.S. government he addressed the ceremony for the Companies producing tires in Mex- the cost of goods and putting jobs would erect huge cost barriers be- of cials the week of June 3, includ- 75th-anniversary commemoration of ico are: Cooper Tire & Rubber Co.; and investment in the U.S. at risk,” tween American manufacturers and ing a June 3 meeting between U.S. D-Day, President Trump said he would Goodyear; Group Michelin; JK Tyre MEMA said. the products they depend on to suc- Commerce Secretary Wilbur Ross stand rm on his demand for tariffs. & Industries; and Pirelli & C. S.p.A. Motor vehicle parts trade between ceed,” the ACC said. and Mexican Economy Secretary “Progress is being made, but not Trump’s announcement on Mex- the U.S. and Mexico totaled $165 The Plastics Industry Association Graciela Marquez Colin, and one nearly enough!” President Trump ican tariffs came two weeks after billion in 2018, equivalent to $452 said tariffs on Mexican goods would on June 5 between Vice President tweeted. “If no agreement is reached, the U.S., Canada and Mexico an- million per day, MEMA noted. cause “immediate harm to the plas- Pence and Mexican Foreign Minis- Tariffs at the 5-percent level will be- nounced jointly that tariffs on Ca- David French, senior vice president tics supply chain” as well as endan- ter Marcelo Ebrard.

the Tweel is ideal for high-load, low-speed erate “extraordinary” environmental savings by Michelin uses — such as on lawn-care or smaller ma- cutting into approximately 200 million tires world- CONTINUED FROM PAGE 1 terials-handling platforms — whereas Uptis wide that are scrapped prematurely every year as molded onto the circular platform that attaches is being designed to deliver performance in- a result of punctures, damage from road hazards to the end of the spokes. This assembly is then distinguishable from a comparable pneumatic or improper air pressure that causes uneven wear. bolted to an aluminum wheel cover/mounting tire, Michelin spokesmen said. Mr. Vinesse also acknowledged an airless tire/ plate that contains the wheel hub. The Uptis shown at Movin’On on a Chevy wheel product like Uptis could lead to a resur- “Uptis represents progress toward Miche- Bolt EV was designated a size 215/45N17, where gence in retreading of consumer tires, although lin’s vision for tomorrow’s mobility,” Mr. Vi- N represents non-pneumatic. Eventually the in- retreading in this sense likely would involve 3D nesse said, “and also embodies our commit- dustry will have to come up with accepted sizing printing — or “recharging” — of new treads. ment to a better, sustainable mobility for all.” nomenclature and roadworthiness testing proto- This is not Michelin’s rst attempt to bring a While GM was introduced as the development cols for non-pneumatics, a spokesman said. distinctly different technology to market with an partner of Uptis, the technology is not exclusive to Michelin has tested the Uptis prototype in OE customer. In 2005 it worked with American the U.S. car maker, according to Michelin CEO A look at the Uptis deforming. both extreme heat and cold environments and Honda Motor Co. to bring the Pax non-standard Florent Menegaux, leaving the door open for oth- tive industry into the future and a great example determined neither affects the concept’s per- tire/wheel run-at system to market on Honda’s er vehicle makers to consider it a well. of how our customers bene t when we collab- formance. On the contrary, a spokesman said, Odyssey minivan, only to discontinue it three GM, however, was the rst to express an orate and innovate with our supplier partners.” it offers considerable advantages in extreme years later due to customer dissatisfaction. interest and therefore has a head start in the From GM’s perspective, Uptis represents a heat conditions since there’s no risk of drivers The companies later settled a class-action development process. maintenance-free product that offers the prospect running their tires underinated, which al- consumer lawsuit pertaining to the Pax system. Michelin and GM have entered into a joint of essentially no tire/wheel-related breakdowns. most always leads to premature failure. research agreement under which the companies Mr. Kiefer said GM likely would introduce the The new design, in development for much of intend to further develop and validate the Uptis product on a limited basis, targeting electric vehi- the past decade, means the Uptis won’t be built/ prototype with the goal of introducing Uptis on cles and eets initially, which also could lead to assembled in Michelin’s Tweel factory in South passenger models as early as 2024. development work on autonomous vehicles. Carolina. Prototype versions are being built in Michelin and GM have been testing the pro- Eventually, though, GM foresees airless tire/ South Carolina, but once production ready, totype on vehicles such as the Chevrolet Bolt wheel composites as compatible with its full Michelin intends to build/assemble them at EV and disclosed that they intend to initiate range of passenger vehicles, Mr. Kiefer said, its plant in Chennai, India. real-world testing of Uptis on a test eet of declining to comment on the extent of GM’s Michelin claims the Uptis prototype Bolt EV vehicles in Michigan. exclusivity with Michelin on this product. represents a major advancement toward The companies have been granted permis- According to Michelin, the airless aspect of achieving its Vision Concept, which de- sion to test vehicles with the Uptis tire/wheel the Uptis means drivers of passenger vehicles buted at the 2017 Movin’On Summit. The on public roads in South Carolina and have feel safer on the road and operators of passen- Vision Concept introduced four key pillars applied for permission in Michigan, as well as ger vehicle eets will minimize downtime and of innovation: airless, connected, 3D-print- in a number of other states such as California, improve ef ciency. ed and 100-percent sustainable (entirely re- Georgia and North Carolina, a spokesman In addition, society at large should see ben- newable or biosourced materials). said. Permission is necessary since Uptis is e ts from “extraordinary” environmental sav- “Uptis demonstrates that Michelin’s vi- not yet considered a legal road-going product. ings through reduced use of raw materials for sion for a future of sustainable mobility is “General Motors is excited about the possibil- replacement tire or spare tire production. clearly an achievable dream,” Michelin Group ities that Uptis presents, and we are thrilled to Mr. Vinesse said the Uptis tire/wheel as- CEO Florent Menegaux said. collaborate with Michelin on this breakthrough sembly weighs about 5 percent more than a “Through work with strategic part- technology,” Steve Kiefer, GM senior vice pres- comparable pneumatic tire/wheel assembly, ners like GM, who share our ambitions Aluminum wheel ident, global purchasing and supply chain, said but using an airless tire/wheel product elim- for transforming mobility, we can seize assembly at the product’s launch at Movin’On, Michelin’s inates the need for a spare, resulting in a net the future today.” Composite rubber and proprietary Designed with renowned car global sustainable transportation summit. weight improvement. Mr. Vinesse stressed that developing a innovative high-strength resin manufacturers for passenger “Uptis is an ideal t for propelling the automo- The Uptis differs from the Tweel in that product like Uptis could help Michelin gen- embedded berglass car performance

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