Industry Embracing Electronic ID Program by Miles Moore Accomplished Using a Single Technol- [email protected] Ogy and Information Format

Industry Embracing Electronic ID Program by Miles Moore Accomplished Using a Single Technol- Mmoore@Crain.Com Ogy and Information Format

Tire Business Special Report TrendsInThe Industry support growing 16 Tire makers unveil WinterTireMarket 12 for all-weather category 14- latest products

April 29, 2019 $79 per year, $4 per copy www.tirebusiness.com Changes are a-coming Industry embracing electronic ID program By Miles Moore accomplished using a single technol- [email protected] ogy and information format. WASHINGTON The new study addressed the sec- The tire retailing industry is ready to ond question, NHTSA said in the work with the National Highway Traf- report’s executive summary. c Safety Administration (NHTSA) to NHTSA based the report partly help create an equita- on the results of stake- ble, technologically holder meetings that achievable electron- included representa- ic tire identi cation tives of major tire man- program, according ufacturers, large tire to Roy Little eld III, CEO of the Tire dealers, the U.S. Tire Manufacturers Industry Association (TIA). Association (USTMA) and TIA. “We don’t care which technology In the study, NHTSA considered is used,” Mr. Little eld said. “We two main electronic collection tech- just want it to be uniform. We want nologies — radio frequency identi - to make sure everybody has the same cation (RFID) tags and two-dimen- thing. We’re technology-neutral.” sional (2D) barcodes. Requiring electronic iden- ▼ Government, Both RFID and 2D seem ti cation of tires based on industry must work technologically feasible, and tire identi cation numbers is NHTSA said it believes a stan- Tire Business photo by Miles Moore together on tire Chris Donovan (left) of Sullivan Tire Co. talks with Clemson keynote speaker Chris Helsel of Goodyear. technologically feasible, ac- ID program, says dard format could be achieved cording to a report NHTSA Discount Tire strat- between the technologies, pro- submitted to Congress April 9. egist. Page 20 I vided electronic tire identi ca- Goodyear exec talks technology at Clemson “However, additional in- tion contained unit-level iden- dustry effort and possible NHTSA ti cation, the agency said in the report. By Miles Moore and original equipment manufacturer expectations, are in regulatory action may be required to Since the format of the data on RFID [email protected] turn presenting new challenges to tire manufacturers. ensure use of a single type of technolo- tags is fairly in exible, NHTSA said, HILTON HEAD ISLAND, S.C. “We’ve been dealing with change all along,” he said. gy and standard identi cation format,” achieving compatibility would require Advanced vehicle technology is coming fast, and it will Goodyear uses the acronym FACE — eets, autonomous the agency said in the report. 2D barcodes include a 96-bit serialized have a major impact on tire technology as well, according vehicles, connected vehicles and electric vehicles — to NHTSA performed the study as global trade item number (SGTIN)-for- to speakers at the 35th Clemson University Glob- describe the forces driving change in mobility. directed by the Fixing America’s mat electronic product code (EPC). ▼ al Tire Industry Conference at Hilton Head, held TB Publisher “Long-established companies are now in Surface Transportation (FAST) Act, “Although 2D barcodes on tires Dave Zielasko says April 10-12. disruption is a danger of not being leaders or even survi- which then-President Barack Obama do not currently follow this format, Keynote speaker Chris Helsel, chief technolo- daily event in tire vors,” Mr. Helsel said. signed into law Dec. 4, 2015. the capacity of the barcodes would gy of cer at Goodyear, noted that vehicle tech- industry. Page 3I To remain a leader, Goodyear has estab- The FAST Act required NHTSA allow them to do so,” it said. nology has undergone radical changes periodical- lished cooperative projects with advanced to consider whether it was feasible to The report discussed the lim- ly throughout history. mobility pioneers such as Waymo L.L.C. and Tesloop require new tire manufacturers to in- itations of both technologies. Tire “In the 1950s, automatic transmissions eliminated Inc., according to Mr. Helsel. The company also ex- corporate TIN-based electronic iden- servicers would have to purchase the clutch,” Mr. Helsel said. “That was a big change, hibited non-pneumatic tires on an Olli autonomous ti cation technology on all tires. It an RFID scanner, it said, whereas but I think you’ll agree it turned out OK.” shuttle bus at the most recent Geneva Auto Show in also required the agency to determine 2D barcodes could be read through New trends in mobility, with changing consumer habits SEE VEHICLE , PAGE 20 whether that identi cation could be SEE ID , PAGE 22

ITC votes to levy OTR tires at heart of Ponzi scheme 3 duties on Chinese By Bruce Davis as promised and misappropriated steel truck wheels [email protected] investors’ funds for his own bene t COLUMBUS, Ohio and the bene t of others. An Ohio man has agreed to plead Mr. Adkins and others claimed Nokian making guilty to orchestrating a Ponzi they were buying and selling large progress on new scheme involving OTR tires that OTR tires used on earthmoving 4 defrauded at least 46 investors of an equipment and/or mining equip- Tenn. tire plant estimated $50 million. ment. Investors were told their mon- Artist’s rendering of Nokian’s U.S. plant. Jason E. Adkins, 40, of Jackson, ey would be used to buy the tires at Ohio, was arraigned April 8 in U.S. a steep discount, and that the tires ©Entire contents copyright 2019 by Crain Communications Inc. All rights reserved. District Court in Columbus. Ac- would then be re-sold to a buyer at a cording to case documents, Mr. Ad- much higher rate. kins carried out his scheme as pro- Investors were promised a 15- to prietor of two companies, Landash 20-percent rate of return on invest- Corp. and Midwest Coal L.L.C. ment, generally within 180 days, According to the plea agreement, the U.S. Attorney’s Of ce for the Mr. Adkins conspired from 2012 Southern District of Ohio said. Mr. through 2018 to solicit millions of Adkins sometimes would pay the An Ohio man has agreed to plead dollars from investors under false return on investment for the rst guilty to bilking investors in a Ponzi pretenses, failed to invest the funds SEE PONZI , PAGE 22 scheme involving OTR tires.

Visit us on the web at www.tirebusiness.com TIRE BUSINESS, April 29, 2019 • 3 IndustryNews BREAKING NEWS TB publisher: Embrace ITC votes to levy duties disruption, innovation By Miles Moore [email protected] percent to 5.4 million units, the on Chinese truck wheels lowest since 1958. By Miles Moore Imports grew 26.6 percent in Janu- HILTON HEAD ISLAND, S.C. Anticipating this change, Fiat [email protected] ary-May 2018 over the same period in Disruption is now almost a Chrysler Automobiles shifted its WASHINGTON 2017, but fell 47.1 percent in June-Septem- daily event in the tire industry, focus to its Jeep and Ram models, The International Trade Commis- ber 2018 after Commerce issued its pre- according to Dave Zielasko, pub- and Ford Motor Co. announced sion (ITC) has voted to levy permanent liminary duties, they said. lisher of Tire Business. it would stop selling sedans in antidumping and countervailing duties Accuride Wheels North America Pres- But disruption is good for busi- North America. General Motors against manufacturers and importers of ident Gregory Risch said at the hearing ness as long as you’re prepared to Co. phased out six models — in- Chinese steel wheels with rim diameters his company would be forced to close its face it, Mr. Zielasko said in his cluding the Cruze, Volt and Impa- of 22.5 to 24.5 inches. plant in Henderson, Ky., and relocate to presentation at the 35th Clemson la — and closed ve plants. The ITC’s action is part of its determi- China unless the ITC provided relief. University Global Tire Industry For tire dealers, however, these nation that steel commercial wheel im- In support of the Chinese importers, Conference, held April 10-12 in changes mean the opportunity to sell ports from China are causing material in- Amanda Walker, chief operations of cer for Hilton Head Island. higher-value tires, Mr. Zielasko said, jury to the U.S. steel wheel industry. The Trans Texas Tire, said her company depend- “Disruption can be an opportu- Zielasko although it also means doing analytic vote was 3-2, with Commissioners Irving ed on the Chinese for aftermarket wheels. nity,” he said. “You need to em- work in local selling and servicing Williamson, Rhonda Schmidtlein and Ja- U.S. wheel producers are unwilling to pro- brace innovation and the turbu- sale operations to ensure the statistics to understand the potential. son Kearns voting in the af rmative. vide smaller lots of specialized wheels, or to lence that comes with it.” availability of tires, he said. Understanding the electric vehi- In August 2018, Commerce proposed offer suitable terms of sale, Ms. Walker said. Part of the opportunity comes “Because of disruption, there cle market is also critical to success antidumping duties of up to 231.7 percent China exported 1.01 million steel wheels from not being afraid to work with was a real opportunity for region- down the road. In 2018 alone, EV and countervailing duties ranging from with rim diameters of 22.5 to 24.5 inches your competitors, according to Mr. al wholesalers to gain additional sales nearly tripled over 2017, he said. 48.75 to 172.51 percent on Chinese wheels. to the U.S. in 2017, according to ITC data. Zielasko. In the past year, Goodyear business.” “It took ve years to sell the Accuride Corp. and Maxion Wheels The ITC will notify Commerce of cially and Bridgestone Americas formed There was also disruption caused rst million electric vehicles, but Akron L.L.C. petitioned the ITC in March of its decision May 13, the agency said. TireHub from their company-owned by changing consumer vehicle pref- it took just six months to sell the 2018, seeking relief from Chinese steel This ITC decision has no bearing on wholesale operations, while Michelin erences and resulting shifts in car last million,” he said. wheel imports under Sections 701 and 731 a separate investigation of Chinese im- North America and Sumitomo Corp. manufacturers’ product mixes. Over the next ve years, auto of the Trade Act. ports of steel trailer wheels, 12 to 16.5 of America/TBC Corp. merged their In 2018, light truck sales in the makers will introduce 158 new bat- At an ITC hearing March 14, Accuride inches in diameter. wholesale operations to create Na- U.S. rose 7.7 percent to just shy of tery-powered vehicles, Mr. Zielasko and Maxion officials presented figures show- On April 16, Commerce issued prelim- tional Tire Warehouse. 12 million units, a level passenger said, citing data from Paul Eichen- ing that Chinese steel truck wheel imports in- inary antidumping duties of 38.27 to 44.35 This didn’t just mean the com- car sales never achieved, he said. berg Strategic Consulting. creased 14.6 percent from 2015 to 2017. percent on those wheels. ing-together of two major whole- Simultaneously, car sales fell 12 SEE DISRUPTION, PAGE 20 Icahn unveils Pep Boys Fleet to service large, small fleets SOUTHFIELD, Mich. Icahn Automotive Group L.L.C. has launched Pep Boys Fleet to provide vehicle service for eets on-site or at Pep Boys service locations in an effort to capture a share of the growing eet market as ride-hailing and Telle Tire & Auto Centers, Eureka, Mo. online retail become more prevalent. With a new tagline, “Driving your business forward,” Pep Boys Fleet will seek to be a preferred partner of large, national eet management companies Telle Tire expands again as well as small eets emerging from the explosive Family-owned business completes fourth acquisition in 15 months growth of transportation network companies and last- mile delivery services, the company said. EUREKA, Mo. Telle Tire’s other recent acquisitions Pep Boys Fleet will offer inspections, warranty-backed Telle Tire & Auto Centers has expanded were Midtown Tire & Auto in St. Louis repairs and preventive maintenance, such as tires, brakes, Icahn Automotive has launched Pep Boys Fleet to to 10 retail stores in Missouri with the recent and Kwik Kar & Lube in Jefferson City in the batteries and suspension, at more than 1,000 compa- capitalize on the growing eet market. acquisition of Assured Automotive L.L.C. in fourth quarter of 2018 and Shamel Auto & ny-owned locations or via Pep Boys Mobile Crew, which Eureka, a southwest St. Louis suburb. Tire in Bridgeton, Mo., in January 2018. launched in 2018 with state-of-art service trailers. also provides customers with a universal eet services The acquisition — Bridgeton, Mo.-based The expansion coincides with other busi- The Mobile Crew has expanded to include small- credit card that allows eet managers to track and pay Telle Tire’s fourth in the past 15 months — ness moves by Telle, including a decision to er-format eet vans that are fully equipped with the for vehicle repairs and preventive service and earn re- expands the family-owned business’ reach restrict business hours at its St. Louis-area necessary supplies and staffed by trained technicians wards, the company said. to nine stores in the greater St. Louis metro- stores to Monday-Friday in order to provide to complete common eet maintenance and repair All eet customers can use a specialized online in- politan area, plus one in Jefferson City, Mo. employees more time with their families, Mr. needs on-location, the company said. voicing and payment system and a 24/7 towing pro- Telle Tire has retained the ve em- Telle said. The move was in response to em- Changes have been made to the service format in gram to any Pep Boys location. ployees who worked at the three-bay auto ployee feedback to an internal survey. Pep Boys locations to establish dedicated Pep Boys Pep Boys Fleet is an of cial tire, brake and preven- service center in Eureka, a community of “This company is built on years of people Fleet bays reserved exclusively to expedite eet jobs, tive maintenance supplier of Amazon’s Delivery Ser- about 10,000 roughly 25 miles southwest of dedicated to providing the best service and and locations also are being updated to include meet- vice Partners (DSP), which provide negotiated pricing downtown St. Louis. best products; having that extra day to rejuve- ing rooms with amenities where eet customers can for Amazon DSP maintenance, along with a pro re- Telle Tire has upgraded both the custom- nate has been greatly appreciated by all and conduct business while their vehicles are undergoing wards program and eet credit. er and service areas of the former lling sta- we offer cutting edge convenience to make it maintenance, the company said. Later this year, Pep Boys plans to launch a manage- tion and plans to expand the facility in the easy for our customers to do the same.” “No matter the size of the eet, our goal is always ment technology solution to help small and mid-size coming year to add two more service bays, Telle Tire will focus in 2019 on improv- to decrease the vehicle’s downtime, ultimately provid- businesses manage their eet maintenance better. according to CEO and President Aaron ing processes and operations, Mr. Telle said, ing a more convenient, exible and personalized way The launch of Pep Boys Fleet is a continuation of Telle, in part to facilitate the addition of tires including implementing a new point-of- of addressing repairs and vehicle maintenance,” Brian Icahn Automotive’s investments in its service business and tire-related services at that location. sales system and a web redesign involving Kaner, president of service, Icahn Automotive, said. and follows the announcement of a comprehensive Financial terms of the deal were not Tire Gurus that should enhance administra- “Pep Boys Fleet is the only service provider to be program to recruit and train automotive service tech- disclosed. tive ef ciencies. backed by a national network and offer mobile main- nicians to meet the demands of the industry, which are tenance and repairs, as well as provide dedicated eet being driven largely by the eet customer, the company VISIT TIREBUSINESS.COM: team support and solutions designed to both streamline said. Check out our redesigned website. the eet manager’s role and help an owner focus on the Icahn Automotive consists of the Pep Boys automotive BEST PLACES TO WORK: Sign up for TB’s Best Places to Work survey. running the business and not the eet.” aftermarket retail and service chain and Auto Plus auto- LIVESTREAM: Be sure to catch editors Don Detore and Dave Zielasko The Pep Boys Fleet team representative will develop motive aftermarket parts distributor, along with the fran- discussing disruptions in the tire industry, live on May 14. Sign up today. a customized service program and pricing plan to help chised Precision Tune Auto Care, AAMCO Total Auto manage a customer’s eet business. Pep Boys Fleet Care and Cottman Transmission auto service centers. Other online content: STORIES • VIDEOS • PHOTOS • NEWSLETTERS • PODCASTS 4 • April 29, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com IndustryNews NEWS IN BRIEF Nokian U.S. plant on schedule for 2020 start U.S. Tire Safety Week to be held May 20-27 DAYTON, Tenn. ing to connect utilities to major areas of the fa- WASHINGTON Eighteen months after breaking ground on cility. The tire maker also is hiring and training May 20-27 will be National Tire Safety Week its rst North American tire facility, Nokian workers who will participate in the production in the U.S. this year, according to the U.S. Tire Tyres P.L.C. is on schedule to begin producing ramp-up process. Manufacturers Association (USTMA). tires commercially by early 2020. “While it’s gratifying to build the facility itself, National Tire Safety Week is an annual in- The Finnish tire maker said the hiring process we’re even more eager to build a strong workforce dustry-led initiative that educates motorists is under way, with 200 of the facility’s 400 em- that will craft premium tires,” Mr. Chia said. about tire care, safety and maintenance, includ- ployees expected to be working by year-end. “We’re looking for driven employees who want ing the potential dangers of unsafe used tires. Peter Chia, Dayton factory operations di- to be part of a positive, productive culture.” “We are urging motorists, including rst- rector, cited the “tremendous collaboration” Mr. Tumlin said the construction project has time drivers, to ‘Know Your Roll’ before among several involved parties for keeping the bene ted the local community since the an- taking to the roads this Memorial Day and project on schedule. nouncement was made. in advance of the busy summer travel sea- “When we were recruiting this project, our “Our lodging tax collections increased sig- son,” USTMA President and CEO Anne goal was to strengthen the community and our Artist’s rendering of the Nokian Tyres Dayton, ni cantly in 2018, which was driven by the con- Forristall Luke said. economic base,” Dennis Tumlin, executive direc- Tenn., tire plant. struction traf c, and our local option sales tax “Just like fastening your seatbelt — an action tor of the Rhea Economic and Tourism Council, erected the rst wall and laid the foundation and housing market have experienced similar that’s become synonymous with safety — prop- said. “It has exceeded our expectations with how of the production building, using more than growth.” er tire care and maintenance also need to be top quickly we have seen economic growth as a re- 6,000 cubic yards of concrete. Mr. Tumlin said lodging tax collections have of mind when it comes to ensuring the safety of sult. We couldn’t be more pleased.” In December, contractors began installing risen 11.7 percent since the company began all motorists on the road,” she said. Construction of the $360 million plant, Noki- equipment, a process that continues today as construction, and local option sales tax receipts The USTMA also is taking aim at a less well an’s third globally and rst in the Americas, was the nishing touches are being made on the are up 7.24 percent. understood risk to consumers — unsafe used disclosed in May 2017. Groundbreaking was production and mixing buildings. The mixing At full capacity, 400 workers will be hired. tires. Once a tire has been mounted on a rim and held in September of that year, and full-scale silos are complete and ready to house raw mate- At capacity, the plant will produce 4 million installed on a vehicle, it’s considered a used tire. construction began in earnest in March 2018. rials when the production process begins. passenger, SUV and light truck tires per year, While new tires must meet stringent feder- Four months later, construction teams had According to Nokian, contractors are prepar- speci cally for North American consumers. al safety standards to be sold in the U.S., worn tires can be resold as used with virtually no restrictions in most states. U.S. tire manufacturers recommend drivers Commerce levies duties on check their tire pressure monthly, regularly ATD earns awards for check their tire tread depth and ensure their tires are rotated and properly aligned. Proper Chinese steel trailer wheels maintenance and periodic inspections by a tire Miles Moore and Border Protection to collect duties technological advances professional are essential for optimum perfor- [email protected] retroactively, effective 90 days before mance and service life of tires. WASHINGTON the publication of the antidumping duty CHARLOTTE, N.C. The U.S. Department of Commerce notice in the Federal Register. American Tire Distributors Inc. (ATD) was lauded re- STREF Scrap Tire Conference has issued preliminary antidump- The cash deposit rates for the wheel cently for its efforts in technology, receiving three Blue Di- ing-duty margins of 38.27 to 44.35 imports are 37.65 percent for Chang- amond Awards for creating business impact via technology set for Dec. 4-5 in Greenville percent against imports of 12- to 16.5- zhou Chungang and 43.73 percent for and human capital. GREENVILLE, S.C. inch steel trailer wheels from China. the China-wide entity, Commerce said. The Charlotte Area Technology Col- The Scrap Tire Research and Education The antidumping duties follow the The scope of the investigation in- laborative (CATC) presented the awards Foundation Inc. (STREF) will host its 8th preliminary countervailing duties of cludes on-the-road steel wheels for road on April 7 in Charlotte, recognizing Biennial Scrap Tire Conference Dec. 4-5 in 58.3 to 293.27 percent Commerce levied and highway trailers and other towable ATD for creating the business value Greenville. on the same product in February 2019. equipment, including utility trailers, in the deployment and use of informa- Co-sponsored by the U.S. Tire Manufac- Elkhart, Ind.-based Dexstar Wheel cargo trailers, horse trailers, boat trail- tion-technology systems and making turers Association and the South Carolina Co., a division of American Development ers, recreational trailers and towable major contributions to the develop- Department of Commerce, the conference Inc./Kenda Rubber Industrial Co. Ltd., mobile homes, Commerce said. ment and recruitment of IT talent to the will focus on scrap tire markets in a sustain- petitioned the International Trade Com- It includes rims and discs for these Charlotte area. able, circular economy, the USTMA said. mission (ITC) in August 2018 for anti- steel wheels, whether imported as an The Blue Diamond Awards recog- Schuette Topics at the conference will include emerg- dumping and countervailing relief under assembly, unassembled or separate- nize innovation in both the creation and ing trends in circular economic thinking, as Sections 701 and 731 of the Trade Act. ly, the agency said. use of information technology in Charlotte, as the region well as challenges and opportunities for exist- In the antidumping determination Commerce said it will announce becomes a hub for industry and nance. ing and potential scrap tire markets including issued April 16, Commerce found its nal determination on the Chinese Huntersville, N.C.-based ATD won two awards for cre- rubberized asphalt, micronized rubber pow- a dumping margin of 38.27 percent wheel imports on or about July 2. The ating business impact and a third for human capital. der, tire-derived fuel, civil engineering, pyrol- against Changzhou Chungang Machin- ITC’s nal determination on material “When I rst came to ATD, we were sitting on 80 years ysis and devulcanization. ery Co. Ltd., and 44.35 percent as the injury is scheduled on or about Aug. 15. of industry knowledge and information that had never been The Scrap Tire Workgroup, a U.S. En- “China-wide entity” rate based on the This investigation is different from fully tapped,” Tim Eisenmann, chief analytics of cer and vironmental Protection Agency entity, will adverse facts available to the agency. that involving Chinese steel wheels for senior vice president of advanced analytics at ATD, said. have a meeting in Greenville Dec. 3 preced- Commerce also agreed with Dexstar commercial vehicles (rim diameters of “What we created, literally from scratch and in a very ing the conference. The workgroup includes that critical circumstances exist in the 22.5 to 24.5 inches), which began in April short period of time, was a tool to tap that vast body of representatives from government, trade as- case of the Chinese imports. This means 2018 after Accuride Corp. and Maxion information and put it to work for our customers, helping sociations, scrap tire publications, scrap tire that Commerce will instruct Customs Wheels Akron L.L.C. petitioned the ITC. them operate more pro tably and see that we were focused recyclers, academia and consultancies. on their success, and in the process deepen the trust be- The meeting will be held at the Hyatt Re- tween us and our customers.” gency in Greenville. OBIT ATD received the rst Perth Amboy Tire co-founder Koplowitz Business Impact Award for Federal UHP tire wins award creating the Advanced An- TORRANCE, Calif. PERTH AMBOY, N.J. & Rubber Co. Eventually the dealer- alytics Center of Excellence Federal Corp.’s Evoluzion F60, the compa- David Koplowitz, 89, co-founder ship became one of the largest Ban- (AACoE) tool, which helps ny’s agship ultra-high performance tire, has of Perth Amboy Tire Inc., died April dag-system retreaders in New Jersey. tire dealers maximize their won a Red Dot Award, according to the tire 20 of heart failure. In 2011, Mr. Koplowitz sold the pro ts. maker. Mr. Koplowitz began business to Service Truck ATD earned its second Federal said the Evoluzion F60 offers supe- his career in the tire re- Tire Centers Inc. (STTC) for award for a technology solution for customers designed to rior responsiveness, expert handling and out- tailing industry at Jersey an undisclosed sum. STTC simplify, automate and add complete transparency to the standing braking and grip. The tire features Tire, which was founded discontinued the Bandag order placement and ful llment process. Using a combina- a reinforced carcass that provides optimum by his father, the late Lou- operation. tion of technologies, ATD created a solution that makes the performance and steering stability with a low is Koplowitz. Preceded in death by his entire distribution process transparent to users, especially noise level. In 1960, he and his broth- wife Rochelle and brother high-urgency orders that the company realized needed to Joe Kao, Federal Tire North America oper- er Edward founded Perth Edward, Mr. Koplowitz is be tracked in real time. ation manager, said this marks the third con- Amboy Tire, purchasing the survived by his son Michael CATC judges noted that these innovations improved the secutive year the company has been recog- location from General Tire Koplowitz and daughter Jennifer. SEE ATD , PAGE 22 nized with the award. The Xplora MTS and the 595 RS-RR won awards previously. Volume. 37, No. 2—Tire Business (ISSN 0746-9071) is published biweekly by 2 years; group rates available. Surface delivery—to Canada, 1 year—$107 (includes “Federal Tire continues to focus on bring- 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 ing more innovative, premium quality prod- Ohio 44221. Periodicals postage paid at Akron and additional mailing of ces. of address. Single copy—$4. Canadian Post International Publications Mail Product Postmaster: Send address changes to: Tire Business, Circulation Dept., 1155 Gratiot (Canadian Distribution) Sales Agreement #40012850, GST #136760444. Canadian ucts to market,” Mr. Kao said. Ave., Detroit, Mich. 48207-2912. Subscription rates: U.S., $79—one year; $148— return address: 4960-2 Walker Road, Windsor, ON N9A 6J3. Printed in U.S.A. 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Brennan Lafferty Making sense of V.P./group publisher [email protected] • 313-446-6768 EDITORIAL STAFF winter tire market P:330-836-9180 F:330-836-2831 David E. Zielasko V.P./publisher, Editorial director inter tires have an identity problem [email protected] • 330-865-6131 with most U.S. consumers. Or maybe Donald J. Detore it’s an image problem. Editor W [email protected] • 330-865-6126 Whatever the reason, winter tires, which clear- Bruce Davis ly provide superior handling and grip on snowy, Special projects reporter icy roadways than their all-season brethren, are [email protected] • 330-865-6145 not appreciated by vast numbers of drivers in the Miles D. Moore Senior Washington reporter northern parts of the U.S. [email protected] • 703-256-9275 It’s different in Canada, where winters are Kathy McCarron harsher and longer. The added safety of winter Reporter tires prompted Quebec to mandate winter tire [email protected] • 330-865-6127 Michael McCrady usage during several months of the year. Ac- Art director/page designer cording to a recent survey, three-fourths of Can- Forum [email protected] • 330-865-6148 ada’s personal vehicle owners said that they own INTERNET STAFF Erin Pustay Beaven winter tires. Canadian drivers get it. Online content editor But not those in the U.S., where shipments of Letters to the editor [email protected] • 330-865-6106 winter tires have slipped to just 2 to 3 percent of American-made, American-proud iar sidewall view of a tire and wheel assembly? Where Mark McCarron I want to commend Tire Business and contributing the tire is, you know... obviously at on the bottom. Digital coordinator total replacement passenger tire shipments in re- [email protected] • 330-865-6123 cent years. The performance qualities and safety writer Dan Marinucci for the Jan. 29 column titled “Monitoring parts origins makes dollars and sense.” Ruth Michelson PRODUCTION/IT STAFF characteristics of winter tires appear to be lost Scott Merryweather on the majority of American drivers. Every member of the auto service industry, from Communications Consultant Media services manager manufacturer to service provider, plays a vital role in [email protected] • 330-865-6104 Part of the problem may be that winters in East Wing Marketing, Chicago delivering the quality, reliability and value expected Anthony DiPonio the U.S. are not as harsh, and snowfall amounts by today’s vehicle owners. The parts and other prod- Chief information of cer Consumers pay for higher tariffs [email protected] • 313-446-1605 are less than they were years ago. Many drivers ucts we design, manufacture, specify and install are With respect to Keith Crain’s editorial (“It’s likely think that the all-seasons tted on their central to our industry’s value proposition. They can time to eliminate all tariffs,” March 18) focused SALES STAFF P:330-836-9180 F:330-836-1005 vehicles will do just ne in most cases, and they also affect the consumer’s safety. on the lack of merits of tariffs in the auto industry, Patrick Cannon do — to a point. Given these facts, it is imperative that tire deal- he certainly captured the futile bene ts of tariffs, Group sales director But when the snow gets deep, the north wind ers and, yes, consumers, know the origins of the especially to consumers. [email protected] • 313-916-1625 parts they choose. Where were they produced and When governments impose tariffs on tires, Christine Zernick whips and the streets ice over, there is no com- Sales director parison between a winter tire, with its snow- and by whom? Are they from established brands? Do the importers/distributors are forced to add the tariff [email protected] • 330-865-6108 ice-gripping properties, and all-season alternatives. manufacturers stand behind their products? costs to their net landed price. In most cases im- Bruce Miller Winter tires are better in the snow and cold The differences between one part and a lookalike porters simply cannot absorb the tariffs and pass Regional sales manager unit from a low-cost provider can be staggering. In on the higher cost to their dealers. [email protected] • 313-737-6665 because they are built to operate in that environ- the case of a strut assembly, for example, several Tire dealers typically base their selling price to John Hickey Sales manager ment. Winter tire tread compounds are designed “invisible” characteristics — grade of steel, type consumers on their net cost. So it’s not hard to g- [email protected] • 260-437-8502 to remain pliable as temperatures fall and inno- of spring technology, internal valving design, and ure out that inevitably it’s the consumer who pays Peter Bianchi vative siping designs molded into tread patterns more — can determine how satis ed, and perhaps the tariff through higher costs. As you are aware, Sales manager provide added grip on snow. even how safe, your customers might be. most Tier 3 tire lines are manufactured in Asia. [email protected] • 312-265-6484 Brooke Stender However, consumers now can consider anoth- Ask yourself, would you install the part on your The application of tariffs on Tier 3 products sim- Classi ed sales representative er alternative — the “all-weather” or “four-sea- own vehicle? ply does not protect American tire manufacturers. [email protected] •330-865-6117 sons” tire, which growing numbers of tire In an age when many technicians and consumers If the intent to impose tariffs is to cripple Asian Tier Lori DiFrancesco might assume most replacement parts are manufac- 3 products and protect American tire workers, un- Sales and conference coordinator makers are bringing to market for drivers in tra- [email protected] • 330-865-6121 ditonally mild winter regions. tured in China and other low-cost countries, I am fortunately history will support this is an unrealistic proud to report that Monroe shock absorbers, struts approach. MARKETING & EVENTS STAFF Such tires, which meet the industry’s three- Sarah Arnold and Quick-Strut assemblies are designed by our en- American tire producers are not in a position to Marketing & events manager peak mountain snow ake performance stan- gineering team in Monroe, Mich., and originate in produce suf cient quantities of entry-level, cost-ef- [email protected] • 330-865-6169 dards for snow traction, aren’t replacements for our manufacturing, product assembly and distribu- fective products. Given this scenario, a segment of Sally Dietz winter tires, but they outperform all-season tires Assistant trade show manager tion facilities in Paragould, Ark. consumers will continue to postpone new tire pur- [email protected] • 330-865-6112 in winter conditions, according to a number of We’re committed to U.S. manufacturing and chases and gravitate to used tires or continue to use proud of it. tires that require changing. AUDIENCE DEVELOPMENT independent tests. Jennifer Mosley As such, this emerging category of tire may I applaud Keith for his realistic stance on this Group director, Audience development very well be ful lling the premise that all-sea- John Perrin, executive director, important issue. [email protected] • 312-649-5312 son tires promised when they burst onto the Product Management, N. A. Aftermarket For new subscriptions or change Tenneco Inc., Monroe, Mich. Richard G. Bender, president of address write to: scene 50 some-odd years ago. Circulation Department, Tire Business Dealers in areas with a true winter climate Tire Dealers Association of Canada 1155 Gratiot Ave. Simple way to increase TPMS awareness Drayton, Ontario, Canada Detroit, Mich. 48207-2912 should be reassured that research and develop- or call 877-320-1716 (U.S. and I am writing in response to the Feb. 4 article on Canada only) or 313-446-0450. ment into pure-bred winter tires goes on, yield- page 8, “TPMS Warning Light Awareness Lacking.” Communicating change imperative FAX: 313-446-6777 ing grip levels on snow and ice unheard of even I think there is a very good explanation as to the I really appreciated Don Detore’s article on email: [email protected] a few years ago. lack of awareness. Consider the warning light symbol. change (“A change for the better,” April 15) Con- For single copy sales: email: [email protected] In those climates dealers can continue to sell It’s a cross-section view of a tire gratulations on your new location and all that Reprints: the safety bene ts of winter tires while also re- with an exclamation point in the goes with it. As a journalist, the job of commu- Lauren Melesio minding their customers of the long-term eco- middle. People in the tire indus- nicating changes is imperative and at the same [email protected] • 212-210-0707 nomics of having two sets of tires, even taking try recognize it immediately, but time, the history stuff can really pile up! EXECUTIVE OFFICES the changeover fees into consideration. how many members of the driving Keep up the good stuff. 2291 Riverfront Pkwy, Suite 1000, It’s a compelling story for winter tire use that public have ever actually sliced into a tire to see a Cuyahoga Falls, Ohio 44221 cross-section? P:330-836-9180 F:330-836-2831 more vehicle drivers need to hear. Greg Ring, director of training, development Why can’t the image, instead, be the far more famil- K&M Tire Inc., Delphos, Ohio CRAIN COMMUNICATIONS INC Keith E. Crain Mary Kay Crain Letters to the Editor Chairman Vice chairman KC Crain Chris Crain President Senior executive vice president Tire Business encourages letters to the editor on any subject of interest Lexie Crain to independent tire dealers. Send a letter to: Editor, Tire Business, 2291 Armstrong Robert Recchia C h i e f n a n c i a l o f c e r Riverfront Pkwy, Suite 1000, Cuyahoga Falls, Ohio 44221. Letters also can Secretary be emailed to [email protected]. G.D. Crain Jr. Gertrude R. Crain Founder Chairman Letters must be signed and may be edited for length and clarity. Please (1885-1973) (1911-1996) include a daytime phone number for veri cation purposes. Letters also may be published on TB’s website: www.tirebusiness.com. 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*Based on the warranty length of all-terrain tires from a leading consumer publication. Warranty terms and conditions apply. **Based on the warranty length of LT-denoted all-terrain tires from a leading consumer publication. Warranty terms and conditions apply. 8 • April 29, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com AutomotiveService Pep Boys recognizes ‘Tech of the Year’ winners SOUTHFIELD, Mich. N.H.; John Forsythe, San Antonio; Pep Boys – Manny, Moe & Jack Raf Kazanjian, Van Nuys, Calif.; recently recognized seven of its au- Peter Madhoo, Apopka, Fla; and tomotive technicians with “Tech of Rob Rathbun, Manchester, N.H. the Year” awards, based on perfor- (master technicians); and Alexis mance and customer service metrics Gonzalez-Rosario, Cauguas, Puerto from 2018. Rico (technician). “Our automotive technicians are The winners represent the various Massachusetts the backbone of our service orga- regions where Pep Boys operates. nization,” Brian Kaner, president of These awards were presented as service at Icahn Automotive Group, Icahn Automotive launched its “Race looks to enhance said. “They are the hard-working to 2026” initiative, a commitment to members of our team who make our help ll the industrywide technician right-to-repair customers’ safety a priority every talent gap projected to be at 46,000 By Miles Moore day. The ‘Tech of the Year’ winners in seven years. [email protected] represent the very best of our team Pep Boys Techs of the Year are (top row, left to right): Rob Rathbun, Manchester, The Race to 2026 program includes BOSTON from across the country.” N.H.; Robert Daigle, Nashua, N.H.; and Alan Bethyou, Chicago. (Bottom row, left initiatives to attract those to the skilled The Massachusetts legislature is Pep Boys is part of Icahn Automo- to right): Peter Madhoo, Apopka, Fla.; Alexis Gonzalez-Rosario, Cauguas, Puerto trades, while supporting the Icahn considering legislation that would up- tive Group. Rico; John Forsythe, San Antonio; and Raf Kazanjian, Van Nuys, Calif. Automotive Group’s own employee date and enhance the state’s Motor Each winner was honored at re- customer service efforts; and a prov- ner also are singled out as being the network through this and other similar Vehicle Owner Right to Repair that gional leadership meetings, Pep en commitment to ongoing profes- “home” of one of the company’s most recognition programs, tuition assis- was signed into law in 2013. Boys said. The recipients were cho- sional development and continuing outstanding technicians. tance, an apprenticeship program and The bill, several versions of which sen based on the quality and volume education. The winners are Alan Bethyou, additional company-sponsored train- were introduced early this year, would of their work; record of excellent The respective stores of each win- Chicago; Robert Daigle, Nashua, ing and certi cations. require vehicle manufacturers starting in model year 2022 to equip all new models with telematics systems with “an inter-operable, standardized and open access platform” that would securely communicate all vehicle data via direct connection to the platform. The bill also would require that vehicle owners and lessees have access to the data, and that they may authorize PROGRAMMABLE UNIVERSAL TPMS independent repair facilities and franchised dealers to have access as well. COMBINE BOTH FREQUENCIES “Access for vehicle owners and independent repair facilities shall be standardized and not require the use of any authorization, directly or indi- rectly, by the manufacturer unless that authorization system for access to vehicle networks and their onboard diagnostic systems is standardized across all makes and models,” the bill states. The question of access to telematics data needed to be clari ed from the original bill, according to Aaron Lowe, senior vice president of regulatory and government affairs for the Auto Care Association. A growing number of vehicle manufacturers require their own authorization to access onboard diagnostic information, Mr. Lowe said. Massachusetts was the rst state to pass Right to Repair legislation, which requires auto makers to provide to car owners and independent repair shops, OE QUALITY SENSOR in a readily accessible and affordable manner, the same diagnostic and repair information they make available to their franchised dealers. COMBINE BOTH FREQUENCIES Two different versions of R2R passed as a bill in the state legislature % VEHICLE and as a ballot initiative in 2012. The 99 COVERAGE legislature passed a reconciliation bill RUBBER / ALUMINUM late in 2013, which then-Gov. Deval Patrick signed. The provisions of the Massachu- MEMBER setts R2R bill went into effect with ® model year 2018, according to Mr. Lowe. The ACA is a member of the Mas- C O M P L E T E S O L U T I O N sachusetts Right to Repair Coalition, ONLY PRODUCES TPMS TOOLS & SENSORS which advocates for Right to Repair MORE COMPATIBLE & EASY TO USE • MOST CURRENT VEHICLE COVERAGE and monitors compliance with the law. “We have tested virtually all makes

WNLOA O D D and models to determine compliance, WIRELESS FREE MAXIVCI MINI and we have had a lot of really good TS508 For The Life Of The Tool TS608 success,” Mr. Lowe said. “We’ve de - ADVANCED TPMS SERVICE & TPMS ARE UPD TW A F T nitely had good cooperation, although E O S S • Read & Relearn All Known Sensors FREE • Includes 20+ Service Functions some automakers have been more co- • 4 MX-Sensor Programming MethodsFOREVER • AutoSCAN All Vehicle Systems operative than others.” • Exclusive TPMS Status Screen • 4 MX-Sensor Programming Methods All the versions of the R2R update • Tire Pressure Placard Value Reset • Enhanced TPMS Status Screen that have been introduced are the same bill, according to Mr. Lowe. No hear- ings have yet been set for any, he said. Phone: (855) 288-3587 • [email protected] Follow Us @AutelTools AUTEL.COM • MAXITPMS.COM • MAXISYSADAS.COM ©2019 Autel Intelligent Technology Corp., Ltd., All Rights Reserved Visit us on the web at www.tirebusiness.com TIRE BUSINESS, April 29, 2019 • 9 AutomotiveService Establish, honor interim diagnostic deadlines By Dan Marinucci must update the shop foreman or ser- [email protected] Dan Marinucci Typically, long-term customer relationships vice manager about the job’s progress. utomotive service personnel is a freelance It may be time to reassess the can boost customer con dence automotive are built on trust. That trust includes the process; perhaps it’s necessary to Aand loyalty by establishing service writer and charge the customer for more diag- interim deadlines on diagnostic pro- former editor of belief that you’ll provide a good value nostic time. cedures and repair work. two automotive But whatever interim checkpoints Likely, tire dealers and service shop service magazines. and treat people fairly. you establish, the troubleshooting operators reading this column have process should not and cannot turn seen diagnostic procedures — not to ditional time and cost. Then contact are the more-dif cult problems to a 30-minute interim deadline for into a runaway train. Instead, there mention the actual repairs — take the car owner as soon as humanly solve and to estimate. drivability testing and 45 minutes should be accountability earlier in longer than they had expected. If possible. Waiting until later is coun- Then, based on the techs’ time for electrical. the job rather than hours later. you’ve been around a service depart- terproductive. expenditures, set interim diagnos- Suppose a tech is struggling to ment for any length of time, you Also, study the time techs have tic deadlines for diagnoses; adjust pinpoint the car’s problem and has Dan can be reached via e-mail at tirebusi- recognize that technicians complete been spending diagnosing electrical and ne-tune them as you gain reached the interim deadline of 30 or [email protected]. His previous columns are some tasks sooner than anticipated. and drivability issues. Usually, these more experience. For example, create 45 minutes. At that point, he or she available at www.tirebusiness.com. But sometimes, diagnoses and/or repairs devour time — particularly when service managers least expect it or are least prepared for it. Cop- ing with this unexpected time may be the biggest challenge to customer satisfaction that managers face. My years of eld experience have convinced me that the inevitable time “overruns” are only as hurtful as service personnel choose to make them. During my earliest work experience back in the late 1960s, I recognized that xing the vehicle correctly the rst time was the business practice to follow. At the same time, however, I also realized that unwanted surprises could occur in the process of trying to perform the proper repairs. In fact, the only thing we really count- ed on was that unexpected things could go wrong and delay a job. A diagnosis or repair that runs long spells bad news for both the vehicle owner and the business itself, but bad news never, ever becomes more palatable — less bad, if you will — when service personnel don’t in- form the customer promptly. Typically, long-term customer relationships are built on trust. That trust includes the belief that you’ll provide a good value and treat people fairly. In turn, fairness demands prompt updates on any obstacles to the goal of providing value. On the one hand, some motorists behave unreason- ably — no matter what the situation. On the other hand, I’ll wager that reasonable people comprise the core of your long-term clientele. Typically, reasonable people expect the same courtesy from you that they demand from professionals such as doctors, dentists, etc. Matter of fact, they also want prompt updates from skilled trades people such as carpenters and plumbers. So, this ex- pectation is nothing new, radical or revolutionary. Now, suppose that your staff has no guidelines or procedures in place. If not, I urge you to hold team meetings at which you establish sensible deadlines for updates. For instance, I believe technicians should report unforeseen problems as soon as they see them. Of course, sometimes a tech sees additional trou- ble the moment he or she raises the lift. In other cases, they don’t encoun- ter those surprises until the job is par- tially or totally disassembled. None- theless, the deadline is right now. Next, a service manager or service salesperson should assemble the information — including estimates of ad- 10 • April 29, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com AutomotiveService Openbay debuts virtual auto service adviser ASA seeks dialog CAMBRIDGE, Mass. vice based on vehicle year, make and model; to nish. Whether it’s scheduling, tire pricing Online automotive repair services software • Allow vehicle owners to book a service or mechanical repair, Otis handles it all.” provider Openbay Inc. has launched an automat- appointment at times dictated by the business; Bob Lane, vice president operations and via video series ed, arti cially intelligent application designed to • Deliver automated vehicle recall information; general manager of Direct Tire, said appoint- NORTH RICHLAND HILLS, Texas serve as a virtual automotive service adviser. • Communicate with consumers based on ments have increased across all locations since The Automotive Service Association The platform, called Openbay Otis, supports their platform preference (text, installing Otis. (ASA) is planning to produce a video vehicle owners by interacting with automotive email, phone); and “Additionally, Otis is working series, called “Garage Challenges,” de- aftermarket businesses and dealership service • Have personalized simulta- outside of business hours, han- signed to help business owners solve ev- departments. Openbay said the rst-of-its-kind, neous private conversations with dling more than 20 percent of eryday challenges. 24/7 service simulates the knowledge and lan- consumers. daily inquiries reaching a cus- Produced in partnership with Frank guage of an automotive service adviser and can Citing data provided by Gart- tomer segment we would not have Leutz, host of “Wrench Nation” radio perform tasks usually associated with an auto- ner Inc., a global research and otherwise been able to reach,” broadcast and owner of Desert Car Care motive services business. advisory rm, Openbay said 85 Mr. Lane said. in Chandler, Ariz., the online videos will Openbay said Otis understands and responds percent of consumers will en- Joe Panichella, automotive ser- be created twice monthly and be avail- in natural language by messaging through a gage with a business absent of vice manager of Boston’s Honda able online at autoinc.org and through communication platform, engaging in conver- human contact by next year, and Village, said Openbay Otis helped the ASA’s Facebook, Twitter, Instagram sations that are two-way, private and personal- 60 percent of millenials today his company increase service ap- and other social media accounts. ized. The company said Otis understands mil- choose to interact with business- pointments booked online and The goal is to produce needed in- lions of mechanical services for both import es via virtual platforms. add more millennials to its cus- formation for shop owners and then and domestic vehicles, allowing it to answer According to Openbay, many tomer base. for it to create discussion among ASA questions to consumers looking to repair or ser- consumers “expect an instan- “We attribute the customer members. vice their vehicle. taneous, personalized connec- growth to Otis’ ease of use and “We want the industry to weigh in on Rob Infantino, founder and CEO of Openbay, tion to their service provider how it performs on mobile devic- these challenges and share their experi- said a recent survey of 300 vehicle owners us- and access to services, speci c to es,” he said. ences and ideas for the betterment of your ing Otis revealed that 90 percent of them “had their needs,” and today’s automo- Openbay said Otis is being shop and the industry as a whole,” ASA a positive reaction to having an online conversa- tive service businesses don’t re- used on automotive service web- Executive Director Ray Fisher said. tion with the automotive service business. ect the expectations of young- sites and marketing solution pro- “Coming together discussing com- “Openbay Otis is industry-changing tech- er millennial and Generation Z viders such as Net Driven, TCS, mon, everyday garage concerns by way nology aimed to modernize the way automo- consumers of 69 million drivers. MechanicNet and Kukui. of sharing ideas for solutions is critical,” tive service businesses interact with the behav- Openbay’s Otis has provided The platform is available as Mr. Leutz said. “My hope is that we can ioral characteristics of the modern-day vehicle that, according to Barry Stein- Openbay’s Otis application is a subscription service featur- further the discussion in a quick and owner,” he said. berg, CEO of Direct Tire & Auto designed to serve as an auto- ing multiple tiered plans suit- easy format to help each other out.” motive service adviser to vehi- According to Openbay, Otis can: Service. able to anything from a single The ASA is a not-for-pro t trade as- cle owners. • Deliver information on several types of ve- “Openbay Otis provides an location, multiple locations sociation dedicated to and governed by hicles and services offered, in real-time during amazing experience to our website visitors and and an enterprise, Openbay said. Each plan has independent automotive service and re- and after business hours; customers,” Mr. Steinberg said. “It streamlines a free trial period. pair professionals. • Deliver price estimates for automotive ser- the process of directing client needs from start For more information, visit openbay.com.

Unmanned inspection

Quick Check Drive and Quick Tread Edge integration: % Autonomous alignment inspection and edge wear detection % Measure camber, total toe and tire tread depth on every vehicle % Electronic and printed results in seconds Visit us on the web at www.tirebusiness.com TIRE BUSINESS, April 29, 2019 • 11 AutomotiveService YourMechanic collaborates with Goodyear AKRON from consumers’ homes or eet lots and provide rideshare, corporate and government markets in the The mobile car repair network YourMechanic Inc. an expedient tire inspection, recommendation and last 15 months, the company said. is adding a tire installation component to its busi- buying option. YourMechanic said it has mechanics in more than ness model through a collaboration with Goodyear “Drivers want ef ciency and conve- 5,000 cities throughout the U.S. and Can- and its goodyear.com-af liated installers . nience as well as optimal vehicle perfor- ada. Its network of mechanics offers more Goodyear and its dealers will be providing tire mance, and YourMechanic delivers on than 800 on-site repair, maintenance and sales and installation via goodyear.com to customers those consumer demands with its tech- diagnostic services for customers at their of YourMechanic.com, an interactive platform that nology-enabled service model,” Mike homes or of ces, seven days a week. delivers mobile repair, maintenance, inspection and Dauberman, Goodyear’s chief digital In October, YourMechanic secured reconditioning services directly to consumer, mobil- of cer, North America consumer, said. $10.1 million in funding to accelerate ity and eet clients. YourMechanic CEO Anthony Rodio the expansion of its mobile car repair YourMechanic said its partnership with Goodyear is said the goal is “to provide a comprehensive solution platform into Canada. “directly in line” with its model of mobile repair by en- for all auto care, for both shared and personal mobility. The company said it will use the funding to build abling its af liated mechanics to inspect, diagnose and We believe this is an important step toward realizing additional services for rental, rideshare, corporate order tires for vehicles directly at their point of need. that vision.” and government eet managers. By integrating with Goodyear/Goodyear.com, Initially launched in 2017, YourMechanic’s Fleet Founded in 2012, the company said it has secured YourMechanic af liates can order tires directly Solution has doubled its customer base in the rental, $35.3 million in funding to date. Rodio Canadian Tire, Fountain, Unimax among honorees TORONTO Canadian Business magazine has named Canadian Tire Corp., Foun- tain Tire and Pneus Unimax Ltd. to its “Best Managed Companies” in Can- ada list in recognition of their overall performance and sustained growth. Fountain Tire is considered a “plat- inum” category winner (on the list for at least seven straight times), while Canadian Tire is a “gold” category winner (for the fourth, fth or sixth straight year). Unimax is on the list for the second straight year. Companies being considered for this recognition are evaluated by an independent judging panel comprising representatives from program sponsors in addition to guest judges, according to Rogers Media, publisher of Canadian Business. Among the criteria considered are a clear strategy and vision, investment in capability and commitment to talent. Companies must have annual sales of more than $15 million to be eligible. “It’s much more than just nancial performance,” according to Peter Brown, co-leader of the Canada’s Best Managed Companies program and a Deloitte Private partner. “The ingre- dients to success also include overall business performance and sustained growth. It takes dedication and commitment from the entire organization. “Canada’s Best Managed Companies deserve recognition for their entrepre- neurial approach to excelling in an un- certain economic climate. They truly bring out the best in Canadian business leadership,” Mr. Brown added. The 2019 winners were honored at a gala in Toronto on April 17. Boucherville, Quebec-based Pneus Unimax goes to market with seven retail banners, the most prominent of which is the Point S program, which succeeded the “Uni- pneu” brand three years ago. Since then, Point S has climbed to the top of the industry in terms of advertising awareness, Unimax said, noting it serves more than 850 independent retailers across Canada and distributes in excess of 3 million tires annually. In addition to managing the Point S retail program in Canada, Unimax offers two other retail marketing programs, primarily for smaller dealerships in Quebec and Maritimes provinces — Prestige Tire and Pneus Max Plus. There are 210 Prestige Tire outlets in Quebec and Ontario and 65 Pneus Max Plus outlets. 12 • April 29, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Tire Business Special Feature TrendsInThe WinterTireMarket Who’s all in for all-weather designation? A boost Support grows for adding four-season category to industry product mix for sales, By Bruce Davis [email protected] 2018 Winter tire usage TRAC Winter Tire Report s it time for the industry to consider adding profits “all-weather” to the accepted product mix Ivocabulary? CANADA Tire warehouses may There’s a growing community of players, led provide opportunity by Nokian Tyres, Kal Tire and others, arguing 76% that the time has come to add all-weather tires By Nancy Dunham as a distinct category to the mix of products for [email protected] customers in areas of the U.S. and/or Canada BRITISH s you start to consider your win- that experience “milder” winter conditions. COLUMBIA ter tire order, keep in mind some All-weather — or “four seasons” — tires 64% MARITIMES Adealers are moving toward a are considered an upgrade on the traditional ALBERTA 94% new service to boost sales and reinforce “all-season” tires, which some have started call- customer loyalty: seasonal tire storage. 70% SASKATCHEWAN QUEBEC ing “three-season” tires. MANITOBA ONTARIO There are no raw data, but anec- This trend coincides with the growing use 100% dotal evidence indicates such storage of the three-peak mountain snow ake (3PMS) 60% 69% is growing in popularity among retail symbol as a marketing tool to promote a tire’s auto and tire dealers. winter performance capabilities. 2018 Canadian consumer winter tire study. “It’s a great service for the dealership Launched in 1999 jointly by the Rubber Man- to offer,” Kem Chowbay, retail eet ufacturers Association (now the U.S. Tire Man- Province Utilization 2018 Utilization 2017 Utilization 2016 Utilization 2014 manager, Performance Acura in St. ufacturers Association, or USTMA) and Rubber (%) (%) (%) (%) Catherine’s, Ontario, said. “It also be- Association of Canada (now Tire and Rubber National 76 66 68 58 comes a pro t center for the dealership. Association of Canada, or TRAC), the 3PMS is Atlantic Canada 94 83 81 73 Mr. Chowbay introduced the con- a performance-based standard to identify pas- cept to his dealership group a few years senger and light truck tires that attain a traction Quebec* 100 100 100 100 ago when Tire Resort — a full-service index equal to, or greater than 110 (compared Ontario 69 59 65 56 tire storage company with facilities with a reference tire that is rated 100) during the Manitoba/Saskatchewan 60 48 50 39 in Brampton, Niagara and Stoney speci ed American Society for Testing and Ma- Creek, Ontario — was founded in terials (ASTM) traction tests on packed snow. Alberta 70 57 55 45 Niagara Falls, Ontario. The service The standard was developed to help consumers British Columbia 64 60 49 38 provides high-end storage, delivery, identify tires more easily that provide a higher lev- *Mandatory winter tire usage since 2008 wheel washing, rim repair and re n- el of snow traction, the associations have stated. Quebec recently extended the winter tire For now the USTMA will continue to moni- ishing. Mr. Chowbay estimated about Tire makers themselves conduct the tests and mandatory period by 14 days, moving the start- tor the trend to determine whether further action 80 percent of dealership customers determine whether to designate their products ing date to Dec. 1 from Dec. 15, beginning in would be necessary, a spokesperson said. use the service, primarily those near- with the 3PMS. There is no third-party testing or 2019. The end date of the mandatory period re- Shipments of winter tires in the U.S. have fallen ing retirement age. oversight, although Consumer Reports, Tire Rack mains at March 15. The law does not apply to three straight years, USTMA data show, whereas The dealership pays $69.95 to the and others have been comparing and contrasting commercial vehicles or light trucks. winter tire shipments (which include some 3PMS warehouse for each set of seasonal the traction qualities of 3PMS tires versus all-sea- A bill that would have required Maine drivers tires) in Canada have been growing the past six tires stored. Customers pay the deal- sons and “true” winter tires in recent articles. to use winter or all-season tires between Oct. 2 years at an annualized rate of 4.5 percent and now ership $89.95 per set and generally The ASTM reference tire is a Uniroyal Ti- and April 30 of each year failed to gain trac- account for an estimated 45 percent of annual af- switch tires every six months. ger Paw. tion in the state legislature recently. termarket passenger tire sales. “Demographics come into play,” The 3PMS designation differs from the In Canada 76 percent of personal vehicle Among recently launched products that t Mr. Chowbay said. “Clients that are older, 1970s-vintage M+S (mud & snow) owners said in a recent survey that they into the all-weather category are the Nokian (Baby) Boomers or have more income designation for winter tires, which is own winter tires, with residents of the WR G4 family and Toyo Celsius. buy these luxury cars and need snow based on physical design characteris- Atlantic Provinces and Quebec rated Nokian launched the all-weather WR G line in tires. But owners don’t want to lug tics, such as the size, direction, depth, higher than the average and residents of 2009 in North America and since has upgraded to tires into their garages or homes, store angle, width, etc. of tread elements. An M+S the Western provinces lower. the G4 line-up, including a separate SUV product. them and then lug them back out.” tire should have a tread contact surface void The surveying company, Leger Marketing Inc., Toyo introduced the Celsius in 2015 as a “vari- The service not only continually area of at least 25 percent, based on mold di- did not seek to distinguish between M+S and able conditions” tire to address the concerns of draws customers back to the dealer- mensions, according to a USTMA Tire Infor- 3PMS-designated tires, so it is assumed all-weath- drivers who need the attributes of winter tires ship but offers opportunities for addi- mation Service Bulletin. er tires were included as winter tires. The survey, during occasional heavy snowfall but don’t want tional service work. In Canada, Kal Tire has embraced the conducted in late 2018, also showed that two-thirds to incur the expense of buying, installing and “Statistically, the rst opportunity all-weather designation, promoting the category of Canadians claimed to have owned winter tires storing winter tires. for loss of a customer is tire sales,” on its website with a schematic showing the dif- for six or more years and that 80 percent of those The all-weather designation is also gaining Mr. Chowbay said. “The reason is ferences between all-weather, all-season (which it who used winter tires said they believed using momentum in the light truck/commercial sec- you think of Meineke, Midas, all shows as “3-season”) and winter tires, both stud- them had saved them from being involved in “po- tor, where recently Michelin North America of those drive-in services that offer ded and non-studded. tentially hazardous” driving conditions. Inc., Pirelli Tire North America and Toyo rolled multiple services and have lower la- In this schematic, Kal suggests all-weather tires Both the USTMA and TRAC are facing ques- out products featuring the 3PMS rating bor rates. If people begin to use their are an appropriate choice for “milder winter conditions as to how to account for 3PMS-marked Michelin is pitching its Agilis CrossClimate services, you’ll never see the custom- tions, with heavy rain, snowfall that melts quickly tires in their statistical reporting. light truck tire line for commercial truck and er again. Tire storage is something and slush” and capable of performing in conditions The USTMA, for example, noted in its indus- van use as an all-weather tire, capable of operat- those shops can’t offer.” both above and below the 45 degree (7 degree C) try statistical report for 2018 that it introduced ing in severe snow conditions. Nick Fox, co-owner of Point S winter/summer tire temperature threshold. a new tread code, “all-season tires with 3PMS,” Pirelli’s Scorpion All Terrain Plus light truck J&J Tire & Auto Service and Point The description for all/3-season tires is in January 2017. and SUV tire, launched in late 2018 as a replace- S Capital City Tire & Auto Service “warm, dry and mild wet conditions.” As a result, it reclassi ed a portion of tires ment-market only product, is promoted primarily in Helena, Mont., said even without The 3PMS designation, in many circles, has previously categorized as “traction & snow” for its all-terrain performance, but some of the tire’s auto dealer clients, his tire warehouse become acceptable for winter driving in areas that tread as “all-season tires with 3PMS” tread and design characteristics — such as a tread compound service does about $2 million in busi- require winter tires, such as mountainous regions included them in the all-season tread group. designed for improved wet performance and more ness annually at each of the compa- or in Quebec, where winter tires have been manda- This change skewed the trend line for winter siping — also qualify it for the 3PMS designation, ny’s two retail locations. tory on passenger vehicles and taxis during winter versus all-season products and was in part respon- Toyo added an all-weather medium truck tire, Customers primarily are those who months since the winter of 2008-09. sible for a 2-percent drop in winter tire shipments the M655, that features the 3PMS designation run commercial eets and private Quebec amended the law in 2014 designating in 2018, to 5.2 million units, or just 2.4 percent of indicative of its ability to perform in snow and SEE WAREHOUSES , PAGE 22 that tires needed to have the 3PMS designation. all aftermarket passenger tire shipments. ice conditions. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, April 29, 2019 • 13 Tire Business Special Feature TrendsInTheWinterTireMarket Nokian launches premium winter tire for light trucks By Bruce Davis SUV, Nokian now has 78 sizes covering 14- it has become integral throughout Nokian’s [email protected] to 20-inch rim diameter tments in its WR SUV and LT product line. COPPER MOUNTAIN, Colo. G4 product range. The WR G4 SUV also features low rolling Nokian Tyres P.L.C. has upgraded Nokian performed rigorous testing around resistance for fuel savings and eco-friendly its portfolio of premium winter tires the world to ensure the exemplary perfor- driving. with the Hakkapeliitta LT3 winter tire mance of the WR G4 SUV. The testing, the Its functional tread blocks with blade and WR G4 SUV all-weather tire for company said, included wet and dry perfor- grooves ef ciently route rain, snow and slush light trucks and SUVs, respectively. mance testing in Germany and Spain, tread- away from the contact surface, and its Snow Designed for demanding winter wear performance testing in the U.S. and Claws improve longitudinal grip especially use, the Hakkapeliitta LT3 — which winter testing at Nokian’s facility in Ivalo, on snow and improves cornering and lane replaces the LT2 in the winter tire Finland, 200 miles north of the Arctic Circle. changes, the company said. lineup — is reliable and safe on icy Aramid ber is key to Nokian’s punc- The WR G4 SUV tire is available in 36 siz- roads and snow-covered worksites ture-resistant sidewall compound, and es in 16- to 20- inch rim diameters. Nokian Tyres’ premium light truck winter tire, the Hakkapeliitta LT3. alike, Nokian said, thanks in part of the development of stainless studs for areas where studs are allowed It stands out from its predecessors, the company said, thanks to the distinct stud innovations and increased tread depth. In addition, it outperforms the LT2 in ice and snow handling and grip and offers improved grip on wet and slushy conditions. Nokian has identi ed North America, the European Nordic countries, Central Europe and Russia as the LT3’s key tar- WINTER PERFORMANCE get markets. The tire will be offered both with factory studding and as a non-stud- IS ONLY HALF THE STORY ded variant, the company said. To maximize the LT3’s durability, The exceptional winter performance of the studdable Avalanche HerculesTires.com Nokian developed what it claims are Avalanche® RT and all new Avalanche® XUV is just the world’s rst stainless steel studs part of the reason why Hercules is the best choice for tailored for heavy-duty use. The Arc- your consumers. Designed with the latest winter tire tic stud concept consists of a new stud technology, backed by the industry leading Hercules model and body material, improving Performance Promise and availability in a wide range of durability in heavy use and winter conditions, Nokian said. sizes makes Hercules a true winter contender. The stainless steel studs are corro- sion resistant, so the tire is able to withstand salted road conditions longer. In addition to the new material, the new studs are oriented into the stud Avalanche hole using the new bottom ange. The new studs are 12.7 millimeters in length, or 2 millimeters longer than in the LT2, offering longer life, Tommi

Ajoviita, development manager, said. ® Other key features include: RT

• The use of a tear- and cut-resistant | Avalanche | “Arctic Grip” tread compound developed for heavy-duty use; Avalanche • An “aggressive” arrow-shaped tread pattern to remove snow and slush effectively — the center tread design improves stability and steering re-

sponse, while the tailored siping offers ® enhanced traction and cornering grip; XUV • Deeper tread grooves for added slush- planing resistance and self-cleaning capability when driving in deep snow; and • Aramid Sidewall technology for enhanced durability and protection for demanding driving conditions. The tire will launch this fall in 16 SKUs covering rim diameters of 16 to 20 inches with a Q speed rating. Noki- an did not provide actual sizes nor comment on pricing. The WR G4 SUV — the latest iteration of Nokian’s WR all-weather line — is designed speci cally to provide high-performance, all-season handling and reliable winter grip on North American roads. “The strong and durable SUV structure combined with reinforced, punc- ture-resistant sidewalls ensure that the tire is stable and can withstand sudden impacts and cuts that may occur while driving,” Nokian said. The new tire is a companion to the Nokian WR G4, a passenger tire introduced last year. With the WR G4 #HERCULESTIRES 14 • April 29, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com

Tire Business Special Feature TrendsInTheWinterTireMarket A new Bridgestone Blizzak is born Tire maker launching WS90, offering longer life, enhanced performance By Don Detore edly during the ride-and-drive media event, held [email protected] near picturesque Steamboat Springs ski resort. STEAMBOAT SPRINGS, Colo. The thing he’s most excited about, he said, is the He might not have been passing out cigars, difference the tire will make for winter driving but Brad Robison felt like a proud father none- a c i o n a d o s . theless. “Every winter season, sure enough the feed- The product manager of Bridgestone Amer- back comes in: ‘Hey Blizzak, I was able to get out icas Tire Operations (BATO) spent a few days of my driveway the rst time, and I was the only earlier this year near the tire maker’s Winter one to get to work. ... I am going to put them on Driving School, touting the company’s latest my daughter’s car when she goes to college,’” Mr. winter tire offering, the Blizzak WS90, de- Robison, a 15-year Bridgestone employee, said. signed for sedans and minivans. “Honestly, the most satisfying thing is mak- Thanks to a new tread pattern, Mr. Robison ing that impact, working on a product for said, the tire not only will stop vehicles 14-per- that long, then getting feedback and actually cent shorter on ice than winter tires from lead- changing people’s lives for the better, giving ing competitors, but it also will last a season them more con dence in winter. Bridgestone Blizzak WS90 Bridgestone’s Blizzak WS90 is designed to longer than previous Blizzaks. “That keeps me going. It’s cool.” prove grip on ice and snow. pull a thin layer of water away from the sur- But that’s only one of the reasons Mr. Robison The tire will be released to Bridgestone-autho- “These sipes actually underload,” Mr. Robi- face to enhance grip and stability. referred to the new product as “his baby” repeat- rized dealers in May in 51 T- and H-rated siz- son said. “So when you’re turning, accelerating individual tread block. es encompassing 15- to 19-inch rim diameters, or braking, they actually stay locked. This acts “All of the innovations they are delivering covering 86 percent of tments for sedans and like one rm block.” help the whole package perform in optimal sit- minivans in the market. As a vehicle goes through the footprint, the uations,” Mr. Saul said. Pricing has yet to be released, but Bridge- sipes will remain stiff, “but you don’t lose the “It’s amazing what they do.” stone of cials said it would be consistent with edges in the winter. The pattern itself is stiffer. Mr. Saul, who has been involved with Bridge- previous products. The Blizzak WS90 will be “It’s going to stay more intact like an all-sea- stone’s winter products for more than 25 years, produced in Japan and replace the WS80. son tire, but you still have that feature on it. said the tire maker has a “relentless focus on Mr. Robison said the tire is engineered with That is going to help with your responsiveness.” these winter tires,” bringing new, improved a new tread compound that features Bridge- The stiffness, he said provides the extra sea- products to the market consistently, as winter stone’s multi-cell technology, formulated with son of use. conditions put average users often in extreme hydrophilic — water-absorbing — properties “(The tire is) moving around a lot than rub- situations. that are designed to attract water and draw it bing on the road a little bit more, so it’s not gen- “I want to make sure, if you’re on one of our away from the surface of ice to enhance grip. erally going to wear as fast because of that,” Mr. products, that you have the stability and the “When that multi-cell pulls that thin layer of Robison said. con dence in the product,” he said. “We believe water off the ice, the rubber that’s on the ice is “It’s a hard technology to explain, because a strongly in these winter tires. ... That’s where getting a better grip,” Mr. Robison said. “It’s a lot of people talk about stiffer and softer, they the tires separate themselves: At those limits, at new, improved version of the WS80 compound, think compound, but independent of the com- those clutch times.” giving you that extra traction. It really is my fa- pound, throughout the pattern, we have been Mr. Robison said engineers already are for- vorite technology.” able to maintain that pattern’s stiffness.” mulating the next Blizzak iteration, Tire Business photos by Don Detore Brad Robison, product manager at Bridgestone Engineers, meanwhile stiffened the pattern Robert Saul, director of consumer tire prod- “Winter tires are a big priority for Bridge- Americas Tire Operations, is proud of the tire via EdgePerformance Technology, with block uct strategy, U.S. and Canada for BATO, said stone,” he said. “This is a great product. In our maker’s latest offering, the Blizzak WS90. edges and numerous sipes and grooves that im- engineers can model the physical behavior of an world, this is our Super Bowl.” Winter tire bill in Maine TIRE BUSINESSLIVE officially dies AUGUSTA, Maine Editorial-Driven Broadcasts A bill that would have required Maine drivers to use winter or all-weather tires between Oct. 2 Sponsored by Top Disruptions in the Industry & How to Adjust and April 30 of Schrader each year failed TPMS Solutions to make it out of Tuesday, May 14th - 2 PM EDT (11 AM PDT) committee. Register to watch the editorial-driven broadcast: www.tirebusiness.com/live/disruption State Rep. Da- vid McCrea (D-Fort Fair eld) intro- David Zielasko and Don Detore will discuss industry disruptors and how they affect duced H.P. 176 on Jan. 22. The bill was ordered printed and referred tire dealers. Register for this live broadcast, topics include: to the Maine House Committee on • how the internet alters the way shops do business Transportation. • the importance of analytics On Feb. 5, the state Senate placed FEATURING TIRE BUSINESS • the coming trends to keep dealers in-the-know. the bill in the legislative les, accord- EDITORS, INCLUDING: ing to the Maine legislature’s website. We’re bringing our editorial team out of the pages of Tire Business and onto the screen This means the bill is of cially dead, with this inaugural live broadcast including a viewer Q&A where registered viewers the website said. can ask Tire Business industry authorities questions … live! The bill would have assigned the duty of de ning “winter” and “all weather” to the chief of the state police Not available May 14? In Canada, winter tires have been Don’t worry. mandatory during winter months in Register now and we’ll send you the replay link to watch at your convenience. the province of Quebec since 2009. The province recently extended the period by two weeks, moving the David Zielasko Don Detore www.tirebusiness.com/live/disruption starting date for installation on pas- editorial director editor tirebusiness.com senger vehicles and taxis to Dec. 1 from Dec. 15, starting in 2019. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, April 29, 2019 • 15 Tire Business Special Feature TrendsInTheWinterTireMarket Nexen adds passenger, CUV/SUV winter tire to lineup DIAMOND BAR, Calif. stud noise. Nexen Tire America Inc. has updated its winter A square-shaped contact patch improves brak- tire lineup with the release of the WinGuard Win- ing and handling, Nexen said, which together with Spike WH62 for passenger vehicles and the Win- a new tread compound offers increased exibility Guard WinSpike WS62 for CUVs/SUVs. at lower temperatures, ensuring “optimal” perfor- According to Nexen, the studded tires, which mance on snow and ice. were developed from scratch, deliver The tires, both available for facto- enhanced snow/ice performance due ry-direct container orders, come in to an optimal arrangement of the stud 20 additional passenger and CUV/ line. The two tires will replace P met- SUV sizes, expanding Nexen’s winter ric sizes of the Winguard WinSpike. tire coverage to 85 percent of the U.S. The WH62 covers sizes of 13 to winter market. 18 inches in rim diameter, and the The tires will be manufactured in WS62 will cover rim sizes of 15 to South Korea and offered “at a reason- 20 inches. Each tire has 20 stud lines, eight more able price point,” according to the company. than the predecessor models, the South Korean tire Nexen also offers 36 months of roadside assis- maker said, which improves grip and minimizes tance. WinGuard WinSpike WH62 WinGuard WinSpike WS62

ALL-NEW

LUXURY MEETS PERFORMANCE

IMPROVED TRACTION Shorter stopping distance and reliable traction in wet or wintry conditions.

PRECISE HANDLING Specially designed center ribs and a Alliance 551 reinforced shoulder provide enhanced stability.

Alliance adds LONG-LASTING WEAR Wider footprint provides longer wear backed by a 50,000-mile limited treadwear winter tractor warranty. tire to N.A. QUIET RIDE WAKEFIELD, Mass. Staggered tread elements reduce Alliance Tire Group has launched pattern and road noise to ensure a a steel-belted radial designed for smooth, quiet ride. modi ed front-wheel drive assist (MFWA) tractors operating in snow and ice. The new tire, the Alliance 551 Multiuse Professional, combines an R-3 block tread pattern with a tread compound optimized for grip and ex, even in low temperatures, Al- liance said.

Alliance plans to offer the 551 in six popular sizes: 440/80R24 (144D and 149D), 440/80R28, 440/80R34, 540/65R30 and 650/65R42. The tire’s steel belts provide a broad footprint for improved traction and stability and help boost fuel ef ciency by reducing rolling resistance, according to James Crouch, Americas national product manager – agriculture. The Alliance 551 is rated for speeds up to 40 mph (65 km/h). Alliance is targeting municipal and commercial operators, as well Constructed speciﬁ cally to be the premier replacement tire in the industry, the all-new GEOLANDAR X-CV™ as farmers, with the new tire. provides your luxury crossover and SUV customers with an upgrade in long-lasting, all-season performance. And with The tire’s R-3 block tread pat- 23 W-speed rated sizes, it covers nearly all 18”- 22” ﬁ tments. tern features variable-depth sipes that provide extra biting surfaces as well as directional channels to clear snow and slush from the tread surface, according to the tire maker.

clude the 3D sipes that provide more braking) and gained 7 percent in ice edges and more snow performance, braking. So it’s a higher level of the VikingContact7 built to tackle with snow pockets to collect snow target con ict, and this is what we and compact the snow to provide wanted right from the beginning.” additional snow friction. The Viking line launched last year “Our goal was to develop a very in Scandinavia and Russia. Since the well-balanced tire without any com- line has more vehicle coverage than varied winter conditions promises in terms of technology,” the WinterContact line, Conti decid- Mr. Yilkiran said. “So the goal here ed to bring it to North America and was to have a balanced tire bring- continue using the Viking name going our customers safely through all ing forward in both Europe and North winter conditions.” America, Joe Maher, product manag- Compared with the WinterCon- er for passenger and winter tires, said. tact SI (snow and ice), the Viking- Conti acquired the Viking name Contact7 reduced ice braking dis- in 1983 with its takeover of Norwe- tances by 7 percent and improved gian tire maker Viking Tyres. ride comfort, noise, dry braking and snow traction, he said. However, wet braking increased by 2.5 percent. “We accepted this due to two reasons,” Mr. Yilkiran said. “The rst reason is that the WinterContact SI performed on a very high level in By Kathy McCarron time no compromises in terms of per- terms of wet braking. And the sec- [email protected] formance,” Timur Yilkiran, project ond one, … we have a direct target MONTREAL leader for Continental winter tires, con ict between ice performance Continental Tire the Americas tire line development worldwide, and wet performance. L.L.C. has developed a directional said during a media and tire dealer “And I have said we have elevat- winter tire, the VikingContact7, that ride-and-drive event in February. ed this tire con ict to a higher level it claims offers a balance of exibil- “We wanted to keep the high level and this is shown very well here by ity for slippery road conditions and of the predecessor tire line, Winter- the test results. If we had just shifted Continental VikingContact7 stiffness for longer life. Contact snow and ice, on the same from wet to ice, we would have lost The VikingContact7, which re- level as for wet performance, com- network that reduces hydroplaning 2 percent and gained 2 percent, … The VikingContact7 is designed to places the Conti WinterContact SI, fort, noise, rolling resistance and dry on slushy roads and interlocking but we have lost 2 percent (in wet perform in various winter conditions. is designed to perform in various braking.” block ridges to provide improved winter conditions throughout the To achieve this goal, the develop- tracking and stability on snow. season, ranging from wet roads, to ment of the tire was based on three Grip edges, located on the outside slush, to snow and ice. pillars — the compound, the struc- of the blocks, grab into surfaces with The tire carries the industry’s three- ture of the tire and additional fea- snow and ice. In combination with peak/mountain snow ake designation tures, he said. the 3D sipe structure — which pre- and will be available in 88 sizes, in- The Nordic tread compound uses vents bending of the blocks under cluding three run at sizes, covering active silica for providing grip in the in uence of driving forces — the 15- to 20-inch rim diameters with T wet conditions and a rapeseed oil contact area of the tire is increased, and H speed ratings. additive that keeps the tread com- which leads to better traction and The tire covers 87 percent of the pound exible in extreme cold con- braking on ice and snow, Conti said. vehicle market, compared with 71 ditions, Conti said. The tread pattern is designed to percent with its predecessor. Target The oil additive helps to lower the overcome the con ict between han- vehicles include passenger, CUVs, glass-transition temperature of the dling properties and ice perfor- SUVs and light trucks. rubber compound so the tire avoids mance with a directional v-shaped “In the development of this tire, we getting brittle at low temperatures pattern, wide main grooves and basically had one focus. We wanted and improves performance on icy block design that avoids turbulent Tire Business photos by Kathy McCarron to create a tire with superior snow roads, Mr. Yilkiran said. ows, Mr. Yilkiran said. The media and tire dealers test drive the VikingContact7 at Montreal's Cir- and ice performance but at the same The tread design features a groove Additional pattern features in- cuit ICAR track in February. Goodyear Yokohama ‘tribology’ research introduces could yield better ice traction TOKYO YRC’s joint research with Kanazawa University led mid-tier tire Yokohama Rubber Co. Ltd. (YRC), together with re- to the development of a testing machine equipped with a searchers at Kanazawa University, have developed a way high-speed camera that enables visualization of a tire’s By Don Detore to visualize the “frictional state of contact” of rubber on contact with the ground and succeeds in identifying the [email protected] ice, which YRC claims could lead to studless winter tire real contact area. The partners also established an an- GRAPEVINE, Texas Goodyear WinterCommand designs with improved grip on ice. alytical technique for digitizing contact images, which Goodyear has taken another step When running on ice, a tire is unable to make rm led to evaluating the water absorbency and drainage of toward enhancing its winter tire customer of cer, North America contact with the road surface due to the watery lm gen- tire rubber numerically. portfolio, adding a “mid-tier” prod- consumer, said that as Goodyear erated by the icy surface, thus reducing the tire’s grip, The machine is able to observe frictional behavior uct — the WinterCommand — in 54 looks to revitalize its winter lineup, YRC said. Studless snow tires depend on tread patterns between a rubber sample and ice or a smooth trans- sizes and with studding capability. “we are con dent that the Winter- with high drainage performance and water-absorbing parent disk used to replicate ice at speeds of up to 31 The Akron-based tire maker Command gives us a strong winter agents in the tread compound to counter the watery lm. mph (50kmh). Its high-speed camera can take 1 million showed off the new product in late offering that will drive growth in a Up to now when studying a tire’s contact with the micro-level images per second of the tire’s contact area January during its annual dealer con- segment with enormous potential.” road, it has been dif cult to distinguish the area where with the road surface, while simultaneously measuring ference in Grapevine. Mr. Dwyer said it was “import- water is between the road surface and the rubber from the frictional force during the test. The tire, which became available ant” to rename the tire to re ect the the area where the rubber is in direct contact with the Images taken with this testing machine are dark only in in March, comes with the industry’s improved product. road surface (real contact area). As a result, it has been the real contact area. Rubber that includes a water-absorb- three-peak mountain-snow ake des- Goodyear said the WinterCom- dif cult to grasp the degree of real contact accurately. ing agent shows darkness over a wider area than rubber ignation. It covers tments on pas- mand offers enhanced snow and ice Now, however, YRC said it expects the work conduct- that does not include the water-absorbing agent, YRC said. senger cars, CUVs, SUVs and light grip throughout the life of the tire, per- ed by YRC and researchers under Associate Professor Furthermore, digitizing the image with the newly trucks in Q, S or T speed ratings, for forming well at low temperatures be- Tomoaki Iwai with Kanazawa University’s Tribology developed analytical technique to associate the contact up to 20-inch rim diameters. cause of directional tread patterns that Laboratory into this phenomenon will enable the dis- area with the frictional force revealed that the calculated The tire features three zigzag tread feature multiple biting edges designed covery of new compounding agents with enhanced wa- numerical value has a high correlation with the friction- pattern variations designed to be for enhanced traction on snowy roads. ter absorbency and facilitate the development of tread al force of the rubber. paired with speci c vehicle types for It replaces the Ultra Grip Winter patterns that deliver higher drainage performance. Yokohama pointed out that its three-year medi- optimal, customized performance, tire in the Goodyear winter tire lineup. Tribology is de ned as the science and engineering of um-term management plan, Grand Design 2020 all formulated with a “proven” spe- The tire maker offers 10 other Ultra interacting surfaces in relative motion, comprising the (GD2020), includes a winter tire strategy that aims to cialized winter tread compound. Grip tire lines, including three Eagle study and application of the principles of friction, lubri- assert performance leadership in winter tires supplied in Mike Dwyer, Goodyear’s chief Ultra Grip performance offerings. cation and wear. the Japanese, European and Russian markets. www.tirebusiness.com/bestplaces LESS THAN 4 WEEKS UNTIL NOMINATIONS DEADLINE

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tirebusiness.com 18 • April 29, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com OnTheMove

Koetz to head Conti Mr. Cox has more than 20 years George to lead customer Mr. Sugawara will support franchise operational research and develop- of experience in the North Ameri- development, inventory management, ment department; and Mr. Clark — tire division can retreading service team at CMA initial set-ups, changeovers and margin along with six senior managers from HANOVER, Germany industry, both at MONROVIA, Calif. analysis. He most recently was invento- the previous executive committee. Continental A.G. has promoted the supplier lev- Double Coin Holdings Ltd. and ry coordinator for Veritiv Corp. Christian Koetz to head up the rm’s el and in retread its CMA L.L.C. Goodyear taps Phillips tire division as part of a management manufacturing. He subsidiary have Belle Tire hires Canestri restructuring. also supported the promoted Rafael SVP, general counsel Nikolai Setzer, development of George to inter- to oversee procurement AKRON tire division head IT software solu- national customer ALLEN PARK, Mich. Goodyear is promoting David E. since mid-2011, tions for retread service team lead, Belle Tire Distributors Inc. has Phillips to senior vice president and Cox will become the manufacturing, where he will sup- hired industry veteran Felix Canestri general counsel, effective June 4, re- spokesman for the ensuring that Continental’s systems port the customer as its director of procurement, where placing the retiring David L. Bialosky. newly created “au- will continue to support the needs of service team and he will oversee Belle Tire’s procure- Mr. Phillips currently is associate tomotive board” as ContiLifeCycle partners, the com- reinforce the or- George ment procedures general counsel, Americas. Mr. Bi- well as continue on pany said. ganization’s com- and support its alosky, senior vice president, general the rm’s executive Koetz “We are partnering with our re- mitment to its values and customers. growth plans. counsel and secretary, is retiring after board, Conti said. tread shops around the world to Mr. George previously handled nu- Mr. Canestri, 10 years with the Mr. Koetz, who has led the com- maximize productivity and quality merous accounts across the U.S. previously vice tire maker. He mercial vehicle tires business unit and to drive process innovation,” His expanded role includes custom- president of pur- will remain with since July 2018, assumed the three- said Catherine Loss, Continental’s ers in Canada, Mexico and Central chasing at Tire Goodyear as an year tenure as head of tire division and global head of retread. Conti sup- America. He will be tasked with com- Discounters Inc., of cer through his corporate purchasing April 1 and will plies nearly 60 ContiTread retread municating the concerns and policies to said he has ad- retirement date of become a member of Continental’s ex- shops worldwide, including 30 in management and team members local- mired Belle Tire Sept. 30 to assist ecutive board, the company added. the U.S. and Canada. ly and globally. Canestri for years, and its with the transi- Mr. Koetz studied engineering Mr. George joins Jackie Concep- plans for the fu- tion. management and joined Continental’s Kenda names Koczan cion’s team “to communicate and ture drew him to the company. Goodyear also tire division as a trainee in 1996. Lat- implement Double Coin’s Mission Ex- He joined Cincinnati-based Tire said Dan Young, Phillips er, he was responsible for key account to auto tire sales team cellence promise,” the company said. Discounters in 2003 as an e-com- senior legal coun- management for original equipment in REYNOLDSBURG, Ohio Ms. Concepcion was named director of merce and sales support manager. sel and assistant secretary, will be- North America, and then for research Tire industry veteran Edward Koczan customer service on Jan. 1. He advanced through procurement come secretary and associate general and development. has joined Kenda Tire USA Inc. as a Double Coin’s Mission Excellence at Tire Discounters and was named counsel. From 2011 to 2018, he headed the member of its automotive sales team. campaign highlights Double Coin’s busi- vice president in 2016. Mr. Phillips joined Goodyear in passenger and light truck tires replace- Mr. Koczan will be responsible for ness, from products to customer service. 2011 as senior legal counsel, real es- ment business for Europe, the Middle several roles in Clark joins Michelin tate and nance. East and Africa before taking the top the automotive Mighty hires three to Mr. Phillips has led several key position at the commercial vehicle tires sales channel, in- CEO’s exec committee initiatives for the Akron-based com- business unit. cluding managing strengthen offerings CLERMONT-FERRAND, France pany, including the launch of Tire- From 2015 to 2017, he also was pres- strategic accounts, NORCROSS, Ga. Group Michelin’s incoming CEO Hub L.L.C., the 50-50 distribution ident of the European Tyre & Rubber driving growth of Mighty Distributing System of Amer- Florent Menegaux has named nine joint venture operated by Goodyear Manufacturers’ Association (ETRMA). Kenda’s automo- ica Inc. (MSDS) has made three hires senior managers and Bridgestone Americas Mr. Setzer’s position on the executive tive tire channel to support growth in its Mighty Auto to his executive board has been extended by ve years sales and identi- Parts network in servicing the auto- committee, includ- TGI hires Wheeler as “ahead of time” to March 2024. fying new growth motive aftermarket. ing Scott Clark, In his role as the spokesman for the Koczan opportunities. The new hires are: Gabrielle executive vice pres- national sales VP automotive board, Mr. Setzer will be in He will report to Young as director of marketing, Jor- ident, automotive MIAMI charge of “maintaining a uni ed busi- Branden Stotsenburg, vice president dan Taylor as a eld support special- business manage- Tire Group International L.L.C. ness strategy” in this area. of automotive division, for Kenda ist and Mike Sugawara as an opera- ment, motorsport, (TGI) has hired tire industry veteran Additionally, his team will be com- USA. tions analyst. experiences, Amer- Rick Wheeler as vice president of na- plemented with a chief technology of - Prior to joining Kenda, Mr. Ms. Young will work with Mighty’s icas regions. tional sales, a newly created position. Clark cer (CTO) as of 2020, to advance auto- Koczan worked for Sumitomo Rub- franchise advertising board and coun- The new CEO, Mr. Wheeler motive development activities. ber North America Inc.’s Falken cil, support the product team and the who will take up his post at the end brings 25 years’ brand. He also has worked for Toyo marketing group and work with out- of Michelin’s May 17 shareholders experience with Conti hires Cox to aid Tire USA Corp., Nexen Tire USA side agencies to build Mighty’s brand meeting, “has decided to set up a tight Goodyear, Miche- and Sentury Tire North America. awareness and grow sales. group executive committee focused lin North Ameri- ContiLifeCycle clients According to Kenda, Mr. Koczan She previously was director of on strategic arbitrage,” Michelin ca/TCi Tire Cen- FORT MILL, S.C. will contribute to enhancing Ken- marketing for Southwire Co. said. ters and Kumho Continental A.G. has hired retread da’s Light Truck Boot Camp dealer Mr. Taylor will support users of the The board, which met for the rst Tire USA Inc. to industry veteran John Cox to ll the experiential incentive program, the company’s Autopart platform and its time March 25, has three new se- his new position, newly created position of global tech- Kenda Traction associate dealer electronic data interchange (EDI) nior managers — Jean-Claude Pats, where he will be nical services to enhance process program, product education and initiatives. He’s a recent graduate of executive vice president, corpo- Wheeler responsible for technologies for its ContiLifeCycle dealer training initiatives for Ken- Georgia Southern University with a rate personal management; Eric sales, marketing and customer service retread partners worldwide. da’s existing partners. degree in mathematics. Vinesse, executive vice president, teams for the North American market. VIP Tire opens 4th Mass. store RNR Texas franchisee set FRAMINGHAM, Mass. portunities — locations like Framingham where we to open 6 stores in Arizona VIP Tires & Service has opened a retail store can provide valuable auto repair and maintenance in Framingham, its fourth in Massachusetts and services to customers while growing our business.” LUBBOCK, Texas & Appliance lease-to-own stores in the Lub- 59th overall. The company is renovating the waiting area, RNR Tire Express & Custom Wheels fran- bock area; Mr. Summers joined Mr. Arthus in The facility, like all VIP locations, will offer adding a new bar built for laptops that features chisee JSA Tires Inc. has struck a deal with 2016 as managing partner after 10 years with tire sales and service and full-service automotive multiple seats with individual plug-ins. VIP said RNR to open up to six RNR stores in Arizona Sprint. repair, including brake repair, preventative main- it is also adding a beverage station and remodeling in the coming years, RNR Tire said recently. At the same time, RNR is looking for “qual- tenance, mufer and exhaust repair, multi-point two customer bathrooms as well as the showroom Owned by rent-to-own business veterans AJ i ed multi-unit franchise partners” to open up vehicle inspections, wheel alignments, state in- and customer service counter spaces. Arthus and Jason Summers, JSA Tire has four to three stores in the Las Vegas area, which the spections and oil changes. Veteran auto service manager Mike Escola will RNR Tire locations open in west Texas and is franchisor has identi ed as a market that ts The new store is in a 5,000-sq.-ft. former Midas lead the Framingham location. The company said readying a fth, in Laredo, to open in the com- its business model. Auto Service outlet that VIP has been renovating it plans to hire two more technicians in the next ing months, according to Vince Ficarrotta, vice RNR representatives attended the Multi- since leasing the building in early April. The store few months. president of franchising with RNR. Unit Franchising Conference March 24-27 has six service bays and the ability to store up to VIP said it will host a community grand open- JSA opened its rst two RNR Tire stores in at Caesar’s Palace in Las Vegas with that in 1,500 tires, according to VIP, reducing wait times ing celebration in May as well as launch a chari- 2016 in Lubbock and followed up with stores mind. and providing an array of products for customers. table initiative called Oil Changes for Education in Corpus Christi, Texas, and Clovis, N.M. RNR founder and President Larry Sutton The store, which will have a staff of four techni- designed to raise money to bene t area schools. According to Mr. Ficarrotta, JSA wanted noted that Las Vegas’ “demographics and tre- cians and two service advisers, will be open Mon- VIP has 35 locations in Maine, 19 locations in to keep growing and approached RNR about mendous long-term growth potential make it a day through Saturday from 7:30 a.m. to 6 p.m. New Hampshire and one in Vermont as well as the rights to open stores in Arizona. As yet the perfect t for the (RNR) concept. …” Tim Winkeler, president and chief operating of - four in Massachusetts. Framingham is a western franchisees haven’t disclosed which cities will Overall, RNR sees the potential to add nearly cer of VIP, said it was all about “ nding the right op- suburb of Boston with a population of about 68,000. be rst on the list. 40 locations this year, building on the network Mr. Arthus is owner of six Vision Furniture of 118 existing RNR locations in 23 states. TIRE BUSINESS seeks your help in nominating an independent Support material is important to the nomination and must include: tire dealer or retreader who, during the past year, has made sig- • A detailed explanation of the charitable organization(s) or public ni cant contributions to the betterment of his or her community service activity(ies) in which the nominee is involved. through charitable or public service work. The person selected as • The breadth and depth of the nominee’s involvement in charitable the winner will have demonstrated an unsel sh commitment to the and/or public service activities. betterment of others. • The impact the nominee has had on the charitable and/or public service activity. Nominations will be judged by an independent committee outside • Support materials such as newspaper clippings, photographs, of the tire industry. The winner will receive the Tire Dealer Human- letters of commendations and previous awards. itarian Award Medal and a $2,500 donation to the charity of his or her choice. The award will be presented during the 2019 Tire Indus- try Association convention/SEMA Show Nov. 4, in Las Vegas. Nominate an independent tire dealer or retreader who is making a difference in his or her community. The award is open to any independent tire dealer or retreader in North America, regardless of business size or sales volume. Nomi- Go online to submit your nomination form: nees must have an ownership in the business. Self nominations are welcome. Nominators are encouraged to renominate candidates www.tirebusiness.com/humanitarian if they are not past winners. To enter your nominee, complete the online nomination form, upload detailed support material and mail as soon as possible. 2017 2018

Kent Olsen Mark Smith Olson Tire & Auto Service Midas of Richmond Wausau, Wisc. Richmond, Va. Entry deadline July 31, 2019 20 • April 29, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Discount Tire exec: Industry, agency must work together

By Miles Moore consideration of various electronic identi ca- calls, as well as the effectiveness of tire recalls • A system in which eligible tire dealers [email protected] tion technologies, including radio frequency and safety campaigns. could serve as designees to hold customer HILTON HEAD ISLAND, S.C. identi cation (RFID) chips and two-dimen- Tire manufacturers said they must have tire data and transmit them to manufacturers in Now that a federal rule on electronic tire sional (2D) barcodes. The report stresses that purchasers’ information, which can be col- the case of a recall; identi cation is a possibility, industry and the ID format be uniform for all tires, he said. lected only at the point of sale, he said. • An online portal for collection of tire reg- government must work together to ensure any “When the TPMS (tire pressure monitoring However, tire retailers were concerned over istrations from non-designee dealers, overseen such rule is done right, according to John M. system) rule was launched, it was chaos,” he data privacy and the proprietary nature of cus- but not operated by NHTSA; and Baldwin, senior vice presi- said. The NHTSA regulation allowed many tomer data, he added. They also had concerns • Private agreements for providing data be- dent and chief product and different formats and technologies, he said, about enforcement of registration regulations, tween manufacturers and retailers or purchasers. technical strategist for Dis- to the point that the Tire Industry Association especially for small dealers, and wanted op- The information collected should include count Tire/America’s Tire. (TIA) must publish a revised TPMS service portunities for compliance assistance. tire identi cation plus customer names and Mr. Baldwin expressed chart every year for tire technicians. The areas of focus, according to Mr. Bald- addresses (required), plus phone numbers, his views in an address at “So if we do electronic registration, can we win, were: email addresses and social media information the 35th Clemson Univer- just do it one way?” Mr. Baldwin asked. • How should registration work? Could mul- (optional). However, customers should be able sity Global Tire Industry TIA and the U.S. Tire Manufacturers As- tiple approaches, such as designees and online to opt out of providing personal information, Conference, held April 10- sociation (USTMA) formed a joint task force tools, be developed to address different types Mr. Baldwin said. 12 in Hilton Head Island. in January 2017 to develop consensus recom- of retailers and tire sales? NHTSA should offer a compliance assis- Two days before he Baldwin mendations to NHTSA on electronic tire iden- • What tire data should be collected and tance program for tire retailers, coordinating spoke, the National High- ti cation. The task force met several times in maintained? with safety partners and the states to get the way Traf c Safety Administration (NHTSA) 2017 and 2018, focusing initially on passenger • Could compliance assistance tools, along word out. Manufacturers and retailers should released its report to Congress on the techno- and light truck tires, Mr. Baldwin said. with industry communications and education, help communicate the new requirements and logical feasibility of requiring electronic tire “The meetings started out to be fairly con- be developed to help smaller tire retailers educate dealers, he said. identi cation. (See story on page 1.) NHT- tentious,” he said. “It took us over a year to comply with the regulations? “The goal is to have customer information SA was directed to submit the report under agree on a framework, but we have reached • Could the initial focus of the regulation em- available as speci ed in a timely manner for the Fixing America’s Surface Transportation consensus on several high-level themes.” phasize compliance assistance over enforcement? each recall,” he said. (FAST) Act, which then-President Barak The common objectives of the task force TIA and the USTMA eventually agreed If NHTSA nds the industry approach ac- Obama signed into law in December 2015. were to improve the customer data, including there could be three approaches to electronic ceptable, many details still have to be worked Mr. Baldwin summarized the report as a tire registration data, available during tire re- registration, tailored to the type of retailer. out, he concluded.

optimize tire wear life, traction performance and Boomers. Each communicates differently,” Vehicle the fuel-economy contribution from rolling resis- Disruption he said. CONTINUED FROM PAGE 1 tance, he said, making it particularly useful for CONTINUED FROM PAGE 3 “Baby Boomers prefer face-to-face Switzerland. eet management. “Tire dealers will have to know how to communication, while Millennials prefer “Synergies will create more disruptions in the Bruce Lambillotte, vice president, techni- service these vehicles,” he said, “which communicating online. A dealership’s next 10 years than in the last 50,” he said. cal consulting for Smithers Rapra Inc., said the otherwise will go to franchised dealers communications need to cater to both.” Jason Barr, team leader for digital twin and soft- growth of the global electric vehicle (EV) market — which also are in the tire business.” Convenience matters, and smart deal- ware engineering at Bridgestone Americas Inc., will have a major impact on tire development. It’s vital for tire dealers to determine ers will make it as easy as possible for noted that his company, like other tire makers, has Smithers released a study in late 2018 on EVs and how many EVs and hybrid vehicles are customers to do business with them, ac- to nd new ways to bring value to its customers. their inuence on tire technology that focused on bat- in their marketing areas and to train their cording to Mr. Zielasko. “Vehicles are now computers on wheels,” Mr. tery-electric vehicles (BEVs), which run exclusively technicians and shop personnel to deal Goodyear’s “Roll by” concept, which it Barr said. “With this comes new apps, new ser- on onboard batteries, Mr. Lambillotte said. with those vehicles effectively. is testing in Washington, D.C., and Phil- vices and new business models.” China is the world’s largest market for EVs, and “You have to promote that you’re in adelphia, is a current example of putting Tires of course will remain an important “BEVs and hybrids are the only EVs in their mar- this (EV/hyrid) business,” he said. customer convenience rst, he said. component of a vehicle, but the patterns of use ket,” he said. Tire retailers and distributors have Aimed at time-starved customers, the will change with automated vehicles (AVs) and The EV market is growing rapidly throughout been dealing for some time with dis- Roll-by stores are placed in upscale ar- ride-sharing, he said. the world, though starting from extremely small ruptions such as the soaring number of eas of a city, according to Mr. Zielasko. “The cost per mile will go down, largely through preliminary numbers. Despite a high compound SKUs, the proliferation of online tire Customers purchase tires via iPad in the increased utilization, but vehicle maintenance will annual growth rate, the EV market will be limited sales and the imposition of tariffs and du- store and then arrange to have the tires remain static as a vehicle expense, because it will through 2028, except in China, he said. ties on imported tires, according to Mr. installed while they shop, via valet or be a larger focus.” “EVs are starting to get over the hump of having Zielasko. mobile service at no extra charge, he said. With the coming of connected and autonomous enough charging stations, especially in China and He quoted the U.S. Tire Manufactur- Dozens of independent tire dealers na- vehicles, “reinventing the wheel” has become a to a lesser extent in Europe,” he said. ers Association (USTMA) as saying that tionwide are also providing mobile ser- necessity, according to Mr. Barr. Reducing urban pollution and dependence on commercial tire imports are forecast to vice, according to Mr. Zielasko. “If the “How a ride feels will go away with AVs,” he imported oil is spurring EV growth in China. decline 6.8 percent this year, largely due customer wants it, that’s what they’re go- said. The emphasis going forward for tires will Electrics accounted for more than 30 percent of to the anticipated drop in tire imports ing to demand,” he said. be on reducing downtime and having suf cient new bus sales in China in 2016, and more than 3 from China because of the tariffs. Throughout their history, independent strength for continuous mobility. million low-speed, two-passenger EVs are on the Online tire sales are vitally import- tire dealers have been resilient, and their Bridgestone’s Digital Tire Twin concept offers roads in China now, he said. ant, Mr. Zielasko said. Yet the research market share has remained remarkably customers a combination of advantages through Low rolling resistance for fuel ef ciency and rm Treadhunter Inc., surveying more steady, according to Mr. Zielasko. He the capture of data, Mr. Barr said. increased service range are crucial for EV tires, than 20,000 independent tire dealerships, noted that their share of the replacement “You can capture data, but you have to do some- as are noise and vibration reduction, good trac- found that 90 percent had inadequate passenger tire market was 68 percent in thing with it.” tion, wear resistance and load carrying capacity, e-commerce websites and 30 percent had 2018, compared with 67 percent in 2008 What the Digital Tire Twin system does with data, according to Mr. Lambillotte. no websites at all, he said. and 64 percent in 1995. he said, includes tire usage optimization, predictive “If you think we have a proliferation of sizes “All of it is a different way of commu- “In a 24-year period, they have actual- and prescriptive maintenance, system performance now, just wait,” he said. “EV tires don’t need to nicating with customers,” he said. ly gained market share,” he said. “Never optimization and uptime maximization. be radial or steel-reinforced, or offer ride comfort. “Today, there are two major types of forget: tire dealers continue to reign su- The Digital Tire Twin system can predict and The two important things are cost and durability.” retail customers: Millennials and Baby preme in tire retailing.” Merlin franchises get new owners ELGIN Ill. 200,000 franchisee since 2015 — bought the Carpentersville store. Two Merlin 200,000 Miles locations when he acquired a shop in Car- “I’m happy to have taken the step changed hands within the last month. pentersville, Ill., from the previ- to multi-shop ownership,” Mr. Ol- Merlin 200,000 Miles franchi- ous owner Tim Williams — but mos said, referring to the acquisition, see Luis Olmos has added a second has been af liated with the Merlin terms of which were not disclosed. Merlin 200,000 Miles Shop location brand since 1992, when he started as “My shop teams serve the neigh- by buying the business rights and an entry-level technician at the Mer- boring communities of Carpenters- assets of a shop in Elgin. lin shop in Hanover Park, Ill. ville and Elgin, and we look forward Meanwhile, former Firestone Au- He then moved to a Midas franchise, to helping customers maintain and Luis Olmos has acquired this Merlin 200,000 Miles Shop in Elgin, Ill. tomotive retail store executive Ken- according to Merlin 200,000 Mile repair their vehicles,” Mr. Olmos said. the franchise for the store in 2016 from as a business owner serving the East ny Reese has acquired the Merlin Shops, where he advanced to general The four-bay Elgin shop was new- Merlin Corp. and operated it under his Peoria and Peoria communities,” Mr. 200,000 Miles Shop in East Peoria, manager and led that franchise to a top ly built in 1997. Ace Bhimani was own company, DC Motors L.L.C. Reese said. “My team and I look for- Ill., where he was the general man- ranking among Midas franchises. the previous franchise owner. Mr. Reese started with Firestone as ward to helping customers reach their ager for the past ve years. He rejoined the Merlin organization Mr. Reese, who spent a total of 17 a service manager in 1993 at a Chi- mileage goals and discover that life The locations are part of 25 Merlin in 2009 and was employed as the gener- years in the Firestone retail network, cago area store and was promoted to is better without car payments with 200,000 Miles locations in Illinois. al manager of several corporate-owned acquired the East Peoria business from assistant store manager within a year. our easy and affordable Drive For Mr. Olmos has been a Merlin Merlin shops until 2015 when he Donnie Crittendon, who had purchased “I'm excited to take the next step 200,000 Maintenance Program.” Visit us on the web at www.tirebusiness.com TIRE BUSINESS, April 29, 2019 • 21

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warehouses in his area, though, so Tire Discounters to open 19 stores, Warehouses the tires are stored at two off-site CONTINUED FROM PAGE 12 Findlay locations. That can create customers. They pay $60 for tire costly headaches in inventory man- changeovers and $50 for storage. agement, though, so it’s vital to stay including 7 in Indy, by mid-2020 The outlets are in very different on top of the details. By Bruce Davis automotive industry experience to his new job, which areas of town, but both do solid “There are lots of moving parts [email protected] includes responsibilities for expanding the training pro- business in a mix of 60 percent tires when you’re handling all of these CINCINNATI gram and leading innovation. and 40 percent mechanical work. tires,” he said. “If they aren’t tagged Tire Discounters Inc. has disclosed plans to open 19 Chris Albertz, 17-year company veteran, was promot- “We are one-stop shopping,” Mr. correctly, someone can mistake them stores in the coming 12 months, including seven stores ed in March to purchasing manager to help identify and Fox said. “We inspect tires as they for old, used tires and throw them in the Indianapolis metro area, a incorporate new systems for im- come through.” away. If they are a $1,000 set of new territory for the Cincinna- proving merchandising and oth- Customers are noti ed of aws tires that we made pennies on sell- ti-based retailer. er store focused solutions. or damage to the tires and can ing, we need to sell a lot more tires The new stores will expand Tire Dave Chirello, who joined have them xed or replaced on site. to make up for that mistake.” Discounters’ footprint to 135 stores Tire Discounters last August, is Whatever the decision, tires are That’s one reason the dealership in six states by this time next year. promoted to division director of stored in climate-controlled ware- doesn’t advertise the service ag- The rst of the new stores in In- sales. His 25 years of retail auto- houses with sophisticated inventory gressively. If a tire resort was in the dianapolis are scheduled to open motive repair industry experience and re/security systems. area, though, Mr. Hobson said he’d before mid-year. Among the com- includes employment at Pep Boys Cory Hobson, service manager be more than willing to explore it as munities where stores are under – Manny, Moe & Jack; Kauffman for Findlay Audi Reno Tahoe in an option and increase his business. construction are Carmel, Green- Tire; National Tire & Battery; and Reno, Nev., said seasonal tire stor- Phil Maguire, owner of Maguire wood, Noblesville and Plain eld, Tire Discounters plans to open 19 stores in the Jiffy Lube. He will oversee sales age is a hit with his customers. At Family of Dealerships in Ithaca, N.Y., Ind., according to the dealership’s next 12 months, including 7 in Indianapolis. and operations in Alabama, Geor- any given time, he has about 50 said he is not aware of any such tire online store locator. gia, Kentucky and Tennessee. sets of seasonal tires stored for cus- storage services in his area. Although The company, the ninth largest independent retail tire Eldon Riggs, who also joined the company last year, tomers who paid $50 per set for the he chooses not to offer storage due to dealership in the U.S. with 116 stores and 1,200-plus was promoted to director of retail operations, responsi- storage, mounting and balance. lack of space and liability concerns, he employees, did not disclose where else it’s planning to ble for the company’s expansion into the Indianapolis “We have a lot of professionals would consider a third-party service. open stores. metro area. He came to Tire Discounters after a 25-plus coming in, and they have a good “Most dealers struggle with just Tire Discounters has doubled in size since 2011, ex- year career with Tire Barn, another Indianapolis-area understanding that their time is checking 100 percent of tire wear panding southward into Alabama, Georgia and Tennes- dealership. worth more than saving $20,” he on the cars already in our shops. see along the way. In addition, Tire Discounters hired Aaron Eck, Jim said. “But the tire business is very The tire sales come from identifying To support this aggressive growth strategy, the compa- Phillips, George Reynolds and John Ross as eld lead- competitive. If they’re not satis ed, the need and asking for the sale,” he ny is realigning and expanding its management team to ers, tasked with supporting and leading new and exist- they’ll leave and go elsewhere. said, noting there are upsides to the “streamline responsibilities and maximize ef ciencies.” ing markets such as Dayton, Ohio; Huntsville, Ala.; and “Tire sales are at a low pro t mar- service for some dealers. “As we grow in stores, our leadership team is also Knoxville, Tenn. gin, so we have to think what we “Storage isn’t necessarily the ini- adapting to meet the needs of our employees and busi- These new hires bring 90-plus years of collective can offer that the other guy doesn’t. tial traf c generator but it de nite- ness strategies,” President Jamie Ward said. multi-unit automotive aftermarket experience to the That’s seasonal tire storage.” ly would create retention once the “We can’t achieve future years’ objectives with previ- company. There aren’t any tire resorts/ customer was in the door.” ous years’ efforts. We are evolving, adapting and getting Brandon Grubbs was promoted to director of com- in front of what is coming.” mercial sales and service, leading business development To prepare for growth, Tire Discounters over the past for the Northern and Southern Divisions. year has upgraded its digital platforms with projects such Tire Discounters’ targeting of Indianapolis coincides construction of a pool at his per- as a new warehouse management system, new learning with Belle Tire’s push into the same territory. Allen Ponzi sonal residence and also paid more management system, new phone system and new point- Park, Mich.-based Belle Tire has opened nine stores in CONTINUED FROM PAGE 1 than $20,000 to lease a private jet. of-sale software. the Indy area in the past several months and has plans transaction with investor victims. Further, Mr. Adkins failed to Among the personnel changes are: for 11 more in Indiana in 2019. “Making good on early invest- le individual income tax returns New recruit David Cahill assumes the newly estab- Belle Tire recently hired Felix Canestri — vice presi- ments perpetuated (Mr.) Adkins’ reporting his income derived from lished role of director of training, research and devel- dent of purchasing at Tire Discounters for the past three scheme by appearing to corrobo- the scheme, the district attorney’s opment. Mr. Cahill joined Tire Discounters at year-end years — as its director of procurement, overseeing Belle rate his claims, which helped him of ce said in the complaint. In 2018 from Safelite Group. He brings 25-plus years of Tire’s procurement procedures and growth plans. attract more investors,” Benjamin 2013 he reportedly earned at least Glassman, U.S. Attorney for the $1.1 million, which caused a tax Southern District of Ohio, said. loss of nearly $237,000 to the In- Little eld, who attended stakehold- “What the victims didn’t know ternal Revenue Service (IRS). ID er meetings, said, “I think it will ATD was that (Mr.) Adkins was pay- “A person who creates a web of CONTINUED FROM PAGE 1 be quicker than I would have said a CONTINUED FROM PAGE 4 ing off early investments with the nancial lies will soon be caught a Smartphone app. week ago. It looks like they’re trying replacement tire industry, ac- money from later ones. Although up in it. Mr. Adkins offered rates However, 2D barcodes cannot be to get something out this year, but knowledging the challenges the product that Jason Adkins was of return of 15 to 20 percent to read while the tire is in motion, and that’s just a guess.” facing companies attempting to purporting to buy and sell — over- investors and unfortunately these cannot be read easily if the barcode The move toward electronic tire change the way traditional in- size tires — was unusual, the oper- were false promises,” William is on an inside-facing sidewall, the identi cation was based on com- dustries conduct business. ation of his scheme was not. It was Cheung, acting special agent in report said. plaints that tire registration rates were For the Blue Diamond Award right out of Ponzi’s playbook.” charge, IRS, Criminal Investiga- RFID tags have limited memory, abysmally low, Mr. Little eld said. for Human Capital, ATD was rec- For example, the of ce said, two tion, Cincinnati Field Of ce. and it is dif cult to identify individ- “Actually, registration rates were ognized for creating a work envi- speci c investors were paid for Mr. Adkins has agreed to plead ual RFID-tagged tires when they a lot higher than people thought,” he ronment that was challenging and their initial investment of $20,000 guilty to three counts of wire fraud are stacked, according to the report. said. “But now that we’re here, we innovative, attracting more than a with Mr. Adkins in 2016, but they and six counts related to money It is impossible to read 2D barcodes want to do it right. The bottom line dozen data scientists to Charlotte received only $320,000 from Mr. laundering – all crimes punishable on stacked tires, it said. is getting the recall rates up.” in a short period. Adkins in return for approximate- by up to 20 years in prison – and 2D barcodes would be The USTMA, which ATD President and CEO ly $1 million worth of investments one count of tax evasion, which cheaper than RFID tags also attended stakehold- Stuart Schuette said the most overall. carries a maximum penalty of up — 18 cents per tire for er meetings, said it is still gratifying part of the awards Mr. Adkins used several meth- to ve years in prison. barcodes on both side- reviewing the report. isn’t their focus on investment ods to conceal the scope of the Individuals who believe they walls, compared with 50 “Overall, we believe it in technology, “but the results Ponzi scheme and to minimize may have been a victim of Mr. cents to $1 for two RFID is a good foundation for those investments delivered to associated tax liabilities, the dis- Adkins’s scheme are urged to con- tags, the report said. dialogue as NHTSA moves forward our customers, our partners, trict attorney’s of ce said. In one tact Barbara Vanarsdall, the U.S. There have been no formal dura- in developing a tire registration case, he and others sent various Attorney’s Of ce victim witness bility studies of either technology, rulemaking,” the association said. amounts of investor funds through coordinator, at 614-469-5715. but stakeholders expressed no dura- In a statement, Bridgestone called a long series of wire transfers to a In addition, Great Southland bility concerns about either, accord- the NHTSA report “an important number of bank accounts he had Ltd. of Mooloolaba, Australia, ing to NHTSA. next step in enhancing tire registra- created to receive and distribute led suit in August 2017 against “While some cost information tion efforts. our people, and the business as funds obtained fraudulently from Mr. Adkins, his wife Rebekah and and anecdotal comments noting po- “These technologies can serve a whole. investors. 13 other co-defendants seeking to tential bene ts were shared in the to improve the process of notifying “For ATD, transforming through Mr. Adkins also laundered his recover more than $2.4 million it context of stakeholder meetings, a consumers with speed and accura- technology has always been “ill-gotten” proceeds for at least claims it lost in dealings with Mr. full analysis of the costs and bene ts cy in the event of any eld action, about unlocking the untapped val- ve years by investing in front Adkins and the other co-defen- associated with implementation of customer satisfaction campaign ue in this business for the bene t businesses created by co-conspir- dants. electronic identi cation in all tiers or possible recall,” the tire maker of everyone — from the manufac- ators and other methods. It has asked the U.S. District was not performed in the context of said. “We look forward to working turer to the consumer — and that He allegedly bought cars, vaca- Court to foreclose on security in- this study,” the agency said. with NHTSA and other partners to capability lies at the heart of the tions and property with the funds terests and allow it to take posses- Asked when an advance notice of ensure technology promotes safe value we deliver to this industry,” from the scheme. For example, the sion of and sell any collateral that proposed rulemaking on electronic transportation and mobility in the Mr. Schuette said. documents show he paid for the can be secured. tire identi cation might appear, Mr. future.” 80

Pomps Tire Service, Inc. Green Bay, WI 75 70 70

Rucki & Son Birch Tire & Southern Auto & Tire Company, Inc. Automotive Service Tire, Inc. Holyoke, MA Rockaway, NJ Waynesboro, GA 50 50 50

Wilson Eagle Tire Conrad’s Tire Express Tire Company & Appliance, Inc. & Total Car Care Lebanon, NH Eagle Pass, TX Cleveland, OH

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