Modern Tire Dealer April 2012

THE INDUSTRY’S LEADING PUBLICATION

April 2012 | Vol. 93, No. 4 | $10 | A Bobit Publication | www.moderntiredealer.com

Top retreaders prep for growth

Nitrogen generation equipment rebounds

Closing a sale in a target-rich

environment

Winning sports marketing strategies

from retailers

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TIRE RETREAD & REPAIR INFORMATION BUREAUTRIBTRIB

MemberAn Industry Association

Features18 Sports

marketing from the retailer’s perspective

Is it bett er to associate your brand with a spokesperson or a team? Or both?

Th ese three independent dealers

have the answers, and are willing to share

26 Hot topic: tire infl ation

Th e latest nitrogen generation equipment gives you plenty of options

Commercial Tire Dealer™

31 OTR industry: A positive outlookGlobal OTR demand is rising; strongest growth

is in the mining segment

34 Prepping for growthTop retreaders see light at the end of the chamber

35 Top retreaders in the U.S.

38 Commercially Viable

4 EditorialSticker shock: Everything there is to know about the tire, right on the tread!

6 OnlineTraffi c report — Most popular news on MTD ’s website

8 News/viewsTechnology with a-peel: Yokohama takes advantage of orange oil properties

16 Ludwig Report‘Mergers and acquisitions in tires is in high gear,’ says Ludwig

30 Counter intelligenceDon’t blow it! Kill it! How to close a sale in a target-rich environment

40 Business insightNew money: How SalesMinded dealers go get sales instead of waiting on them

44 TPMSMercedes-Benz SLR: Different reset procedures for early, late production

52 Your turnCompany offers management of social media streams

46 Products

48 Quik-Link

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Th e Industry’s Leading PublicationApril 2012, Volume 93, Number 4

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MTD April 2012

Sometimes the government tries to do too much. Tire labeling and tire aging are

cases in point.Tire labeling is a done deal in

principle, with a few details left to be determined. Th e new tire rating system will replace the Uniform Tire Quality Grading (UTQG) system, with the big diff erence being the addition of a rolling resistance grade.

I don’t have a problem with the grading system, which is required by the federal Energy Independence and Security Act (EISA) of 2007. I really don’t think tire manufacturers do, either. Th ey initially fought low rolling resistance testing, but I always got the impression their reluctance was a contract negotiations-type ploy, without agents.

What I don’t like is the idea that the Tire Rating System label must follow the tire on which it is plastered out the door. In essence, the tire in the showroom is the one the consumer will have to buy. I’m not sure that requirement will remain part of the fi nal rule, but I hope not.

Th e Tire Industry Association (TIA) remains strongly opposed to implementing new tire labels as the primary mechanism for the national consumer education cam-paign required by the government’s fuel economy program. Th e National Highway Traffi c Safety Administration (NHTSA) has requested millions of dollars — nearly $8 million in 2011 — to provide support for the required rulemakings establishing fuel economy standards for passenger cars and light trucks; that includes implement-ing the new tire effi ciency rating system.

I hope some of that money goes to TIA, which is well- suited to running the consumer education program.

Th at brings us to the topic of tire aging. Earlier this year, legislation was introduced in the Maryland state legislature that would have put additonal hardship on both tire manufacturers and distributors when selling tires for passenger cars, SUVs, crossovers and motorcycles. Th e state bill would have required them to:

• affi x on all tires a label stating the date of manufacture;• make available a statement on tire aging (which would

spell out that NHTSA recommends tires be replaced aft er six years regardless of the remaining tread depth);

• put the date of manufacture on the receipt or invoice;

• have consumers sign a disclosure statement;• have retailers give a copy of the disclosure statement

to the consumer; and• force retailers to keep a copy of the signed disclaimer.

Any retailers who violated any provision of the new law would have been subject to a $500 fi ne for each infraction.

Th e bill was introduced in both the Maryland Senate and the House of Delegates. Th e House bill (HB729) was introduced with 22 co-sponsors.

Fortunately, the label has been tabled. Th e Consumer Protection and Commercial Law Subcommitt ee of the Maryland House Economic Matt ers Committ ee voted to reject it, which means the House measure is dead for the year.

TIA Executive Vice President Dr. Roy Litt lefi eld called the bill an “outrageous and unnecessary government regulation,” and I agree. But don’t get too smug. NHTSA

is looking at developing a Notice of Proposed Rulemaking (NPRM) addressing tire aging requirements for light vehicle tires.

In the past, I’ve said that tire aging legislation is inevitable. Our industry already has lost this batt le in the court of public opinion; I only hope we can get the govern-ment to back a 10-year expiration date instead of a six-year date.

And I’m tired of all these tire labels the government wants to stick on tires. One day, people will start referring to them as round

and white instead of round and black.I’m not sure how necessary they really are. Th e Federal

Cigarett e Labeling and Advertising Act of 1965 required that the warning “Caution: Cigarett e Smoking May Be Hazardous to Your Health” be placed in small print on one of the side panels of each cigarett e package.

Th at’s really curtailed smoking, hasn’t it? What the heck, while we are at it, let’s put that sticker on the tire, too. ■

If you have any questions or comments, please e-mail me at [email protected].

Editorial

Sticker shockEverything there is to know about the tire, right on the tread!

By Bob Ulrich

One day, people will start refer-ring to tires as

round and white instead of round

and black.

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MTD April 2012

Online

Traffi c reportMost popular news on MTD’s website

V isitors to Modern Tire Dealer’s website, www.moderntiredealer.com, last month were most interested in reading about tire industry movers and shakers and policy makers and their eff ect on the tire industry.

Th e most-read news item concerned TBC Corp.’s plan to acquire Midas through an all-cash transaction (see “TBC enters into a defi nitive merger agreement to acquire Midas,” March 13).

Our second most popular news item covered government legislation having a direct impact on the tire industry, “Will tire tariff s be extended if law is passed?” posted on March 12.

Readers also wanted fi nancial and tire price information, such as American Tire Distributors’ (ATD) 2011 fi nancial report (see “ATD reached $3 billion in sales in 2011”), and “Goodyear will raise tire prices up to 6%,” reported on March 2.

A promotional item for Editor Bob Ulrich’s blog titled “Mano a mano: Discount Tire Direct vs. Tire Rack,” also was a popular item (posted on

March 6). And a maga-zine’s “top” tires report proved to be a popular read (see “‘Consumer Reports’ likes Michelin and...” on March 9).

Also of interest was a tire recall, this one “Yokohama recalls 6,254 Avid H4S tires,” posted on March 24.

In addition to these top news items, you’ll fi nd the latest breaking news on the tire industry. You also can fi nd a digital version of the

current issue of MTD, industry facts and fi gures, a Web poll, archived Tire Dealer of the Year articles and much more.

For the latest news items, readers’ comments and handy links for additional information, go to www.moderntiredealer.com. And be sure to add your own your comments! ■

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Editor: ROBERT J. ULRICH [email protected] Managing Editor: LORI L. MAVRIGIAN [email protected] Editor: BOB [email protected]

Contributors: Auto Service/Technical: MIKE MAVRIGIANTraining/Tire Service: KEVIN ROHLWINGIndustry Analyst: SAUL LUDWIG Art Director: NEAL WEINGART [email protected] Production Manager: KA REN [email protected]

Publisher: GREG SMITH [email protected]

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MODERN TIRE DEALER (ISSN 00268496) (CDN IPM #40013413) (USPS #369-170) is published monthly by Bobit Business Media, 3520 Challenger St., Torrance, California 90503-1640. Periodicals postage paid at Torrance, CA 90503-9998 and additional mailing offi ces. POSTMASTER: Send address changes to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks for address changes to take effect. Subscriptions in the U.S. and its possessions, $65; Canadian, $99; Int’l surface mail, $99; Int’l airmail, $198. Single copies, $10, except the January Facts Issue, $30. Address all subscription correspondence to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks to receive your fi rst issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068.

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MTD April 2012

The use of orange oil in tires is not a gimmick or magic. Yes, it re-places some petroleum-based oils in the compounding, which is good for the environment. But it also helps the tire grip without sacrifi c-ing tread wear and fuel economy.

It also is not a trend. Only Yokohama Tire Corp. uses orange oil in its tires. That includes the new Avid Ascend all-season grand touring tire.

Orange oil — derived from orange resin from the orange peel — has the ability to keep rubber soft

without making it more hysteretic. To explain, Pat Keating, manager of technical engineering, uses the example of a rubber ball losing energy while it is bouncing.

If you drop a rubber ball, it will bounce, but not as high as the dis-tance from which you dropped it. The height will decrease on each successive bounce until the ball is lying on the ground.

In essence, the ball loses energy during every bounce until there is no energy left and it stops mov-ing. The same thing happens to a tire in motion: Energy is lost as it rotates. In a vehicle, however,

the engine replaces all that lost energy, and the tire continues to move the vehicle forward.

Compared to petroleum-based oils, orange oil is less hysteretic, which helps the Ascend roll more freely.

“We also achieve low rolling resistance through the Ascend’s advanced profi le design and tread pattern design,” says Keating. “And the gripping properties of orange oil allow us to do that.”

Bob Abram, product planning manager, says it is possible that

orange oil eventually will be used in all Yokohama tires. “The goal of our Japanese engineers is not the use of orange oil specifi cally, it is the use of whatever is required to meet our goals.”

45 sizes initially, 49 eventuallyAccording to Yokohama, the Avid

Ascend’s main competitors are the Goodyear Assurance ComforTred Touring and Michelin HydroEdge (Michelin North America Inc. recently announced it will replace the HydroEdge line with the new Michelin Defender).

Abram says the biggest trend in

the touring tire segment is higher speed-rated sizes. Almost half of the replacement sizes are H-rated and higher.

The Avid Ascend is available in 45 sizes manu-factured at Yokohama’s Salem, Va., plant. The tire is backed by the following tread wear warranties:

T-rated, 85,000 miles (the highest Yokohama warranty ever); H-rated, 75,000 miles; and V-rated, 65,000 miles. Here’s the size breakdown.

15-inch (11): 175/65R15 84T to 215/70R15 98T.

16-inch (16): 185/55R16 83H to 235/65R16 103H.

17-inch (13): 205/50R17 93V XL to 235/65R17 104H.

18-inch (fi ve): P215/55R18 94H to 235/55R18 100H.

Four more sizes will be added later in the year, including 235/50R19 99V. — Bob Ulrich

News/views

Technology with a-peelYokohama takes advantage of orange oil properties

Yokohama’s orange oil technology is born in the late ‘80s.

dB Super E-spec (low rolling resistance) and the second-generation ENV-R2 (performance) tires are introduced.

The 2012 Toyota Prius v is introduced, with size P205/60R16 91V Yokohama BluEarth S34BZ OE tires.

Avid Ascend (above) enters the grand touring tire segment in 45 sizes; the Geolander SUV (featuring a different orange oil compound than is found in the Ascend) is launched in Japan and Europe.

First tire with orange oil, the Advan ENV-R1 race tire, is introduced at Sebring (Fla.) International Speedway.

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MTD April 2012

News/views

Plus sizing survives for now: Sentaida debuts 32-inch tire In the 2012 Modern Tire Dealer Performance Hand-book (polybagged with this issue) we examine the downward trend in plus-sizing tires.

However, Sentaida Group Co. Ltd. proves that extreme plus-sizing is still alive. The company is manufacturing 32-inch Delinte tires at its Qingdao Sentury Tire Co. Ltd. plant in China.

The company also is producing a 32-inch private brand tire.

The Delinte D8 is available in size 305/25R32 108W XL. Sen-taida began producing the private brand version in January with a 300-piece order.

Sentaida is no stranger to manu-facturing large passenger car tires. Last year, the company was building 28-inch tires. According to Maxwell Wee, director of sales for Sentaida’s Miami, Fla.-based subsidiary, Sen-taida International Inc., the company also is making 30-inch tires under the Delinte brand name.

Sentaida produces passenger, ultra-high perfor-mance, light truck, SUV and CUV tires at its single plant in Qingdao. In 2011, the plant produced 20,000 units, “and will maintain that through 2012,” adds Wee. Sentaida International has 31 distributors and 47 warehouses in the United States.

Yokohama recalls 6,254 tiresYokohama Tire Corp. is recalling 6,254 AVID H4S tires, in size P215/60R15 93H, manufactured between Dec. 2, 2007, and Sept. 19, 2009.

According to the National Highway Traffi c Safety Ad-ministration (NHTSA) Offi ce of Defects Investigation (ODI), these tires fail to conform to the tire identifi -cation requirement of Federal Motor Vehicle Safety Standard No. 139, “New Pneumatic Radial Tires for Light Vehicles.” The molded markings on one sidewall do not contain the complete tire identifi cation number (tin) or partial tin as required. “The lack of a tin on both sides of the tire could make it more diffi cult for consumers to identify these tires if, in the future, a safety-related performance issue were to be discov-ered. As a consequence, there is a risk that the tires would not be removed from service, which, in turn, could increase the risk of a vehicle crash.”

Yokohama will conduct a safety recall campaign by notifying registered owners and providing free replacement tires. Owners may contact the Yokohama Campaign Service Center at (888) 801-4162.

The 32-inch Delinte D8 is W-rated.

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MTD April 2012

News/views

Continental breaks ground for U.S. plantContinental Tire the Americas LLC (CTA) held a ground breaking ceremo-ny for its new tire plant in Sumter, S.C.

The ceremony marked the beginning of the construction process, which is expected to be completed by the end of 2013. By early 2014, the plant will manufacture passenger and light truck tires to meet the increasing demand for Continental and General brand tires from both aftermarket business and automotive manufacturers, the company says.

The fi rst phase of the plant will reach a production capacity of approxi-mately fi ve million units per year in 2017. A second phase in this an-nounced project is expected to bring the plant’s full production capacity to approximately eight million units per year by 2021.

The new site comprises approximately 330 acres and a one million-square-foot production facility.

Altogether, CTA will invest more than $500 million into the Sumter plant

and create about 1,600 new jobs. Jochen Etzel, CEO of Continental Tire the Americas, says the Sumter location was compelling because of its business climate, the availability of a skilled workforce, its proximity to harbors and state offi cials who worked diligently with the company.

Nikolai Setzer, member of Continental’s Executive Board and head of Continental’s global tire business, explained, “building this new facility in Sumter is an important part of Continental’s growth strategy worldwide and, in this case, in particular for the U.S. market. We are experiencing an increasing demand for Continental and General brand passenger and light truck tires in the U.S., and with the Sumter plant we can meet our customers’ needs and can grow our business.”

With the Sumter investment, CTA will have invested more than $1 billion in manufacturing and product development in the U.S., Mexico, Ecuador and Brazil since 2006.

Kumho offers Ecsta rebates A $50 mail-in rebate promotion from Kumho Tire U.S.A. Inc. runs through Aug. 31, 2012. To take advantage of the savings, consumers need to purchase a set of four Ecsta 4X, Ecsta LX Platinum or Ecsta LE Sport tires, fill out the rebate form and submit it with a copy of the receipt within 30 days of purchase.

IMA names Nitto Best in ClassNitto Tire U.S.A. Inc. was named “Best in Class” twice in the 2011 Interactive Media Awards (IMA) competition. In the “Automobile” category, Nitto was awarded for the Nitto Tire Mobile Launch and Nitto Tire Website Relaunch. “These awards are a testament to the talented teams behind our creative projects,” says Stephen Leu, Nitto’s marketing and digital strategist.

Yokohama plans India plant Yokohama Rubber Co. Ltd. has announced it will construct a passenger tire plant in the state of Haryana adjacent to Delhi, India. The estimated investment in building the plant is 4.4 billion yen (approximately $53 million). After the first phase is completed in July 2014, the plant will have an annual production capacity of 700,000 tires.

Cooper opens Serbian plant Cooper Tire & Rubber Co. held a grand opening ceremony at its recently acquired tire manufacturing facility in Krusevac, Serbia. Cooper says it chose Serbia for its economic potential, quality workforce, geographical advantages and Serbian government support. Cooper Tire Serbia becomes Krusevac’s second-largest employer, providing tires for the European and Russian markets.

Global Tire Expo host hotel The Tire Industry Association (TIA) has announced that the Cosmopolitan Hotel will be the host hotel for the 2012 Global Tire Expo - Powered by TIA. The event is a part of the 2012 SEMA Show, taking place Oct. 29 - Nov. 2, 2012, in Las Vegas, Nev. Visit the “Events” section of www.tireindustry.org.

bites

Present at Continental’s groundbreaking were (L to R): Nathan and Raymond Bryson, Pope-Davis Tire, Columbia, S.C.; Jochen Etzel, CTA; Chris Charity, CTA; Tom Englert, Discount Tire, Phoenix, Ariz.; Nikolai Setzer, Continental AG; Jim Sicking, CTA; Sean McDermaid, CTA; Jorge Pola, South Dade Automotive, Miami, Fla.; Richie Betz, Reliable Tire Distributors, Blackwood, N.J.; David Hay, Hay Tire Co. Inc., Charleston, S.C.; Mike Joines, Tire Rack, South Bend, Ind.; Dan Seitler, American Tire Distributors, Charlotte, N.C.; and Bill Caldwell, CTA.

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MTD April 2012

News/views

Bridgestone combines dealer programsBridgestone Americas Tire Operations LLC has offi cially launched an in-dependent retail dealer program called the Bridgestone Affi liated Retailer Nationwide Network.

The new program will combine the company’s current Affi liated Dealer, TireStarz and Family Retail Dealer programs under one umbrella for the United States market. The company says the network will encompass more than 2,500 points of sale nationwide.

“We’ve listened to our customers and designed one of the most comprehensive retail dealer programs in the industry,” says John Baratta, president of replacement tire sales for the U.S. & Canada Consumer Tire Sales division.

“The Bridgestone Affi liated Retailer Na-tionwide Network is the complete package backed by world-class products and services and a nationwide tire protection plan and repair warranty program.”

Tim Tallman, owner of Tallman’s Tire & Auto Repair in Yorkville, N.Y., says the move

makes a good retail dealer program great. “It’s got everything I need to maximize my sales and profi ts.”

The program will offer network dealers the following:

• multi-brand product offerings,• state-of-the-art sell-out programs, and• discounted merchandise and services from nationally recognized

vendors.

The program also provides access to a support team of dedicated Bridgestone Americas retail experts, including local, regional and national sales support, education specialists and a dedicated retail marketing group.

ATD reached $3 billion in sales in 2011American Tire Distributors Holdings Inc. (ATD) posted net income of $117,000 on consolidated net sales of more than $3 billion for its fi scal year ended Dec. 31, 2011. However, an apples-to-apples comparison with the previous fi scal year cannot be made, because following the pur-chase of ATD by private equity investment fi rm TPG Capital and certain co-investors in 2010, a new entity was created for accounting purposes.

For the seven months beginning May 28, 2010, when the merger went into effect, and ending Jan. 1, 2011, ATD recorded a net loss of $36.3 million on net sales of $1.5 billion. For the full fi scal 2010 under both ownerships, ATD recorded income of $5 million on sales of nearly $2.2 billion. As listed in its SEC (Securities and Exchange Commission) fi ling, the company’s objective is “to be the largest distributor of replacement tires to local, regional and national independent U.S. tire retailers, as well as various national and corporate accounts, while providing our cus-tomers a critical range of services such as frequent and timely delivery of inventory as well as business support services.” ■

Myers makes Forbes list Myers Industries Inc. has been named one of America’s 100 Most Trustworthy Companies by Forbes magazine. Myers was ranked in the Small-Cap Company category, with an accounting and governance risk score of 94 out of a possible 100.

Va. dealers hold conventionThe Virginia Automotive Association’s (VAA) 2012 Convention and Trade Expo was held March 30 - April 1, 2012, in Richmond, Va. Featured speakers included Bill Ford of Sesco, Steve Ferrante of Sale Away and Reed Melis of Paar Melis & Associates.

Pete’s opens 17th location Pete’s Tire Barns Inc. has opened a store in Montpelier, Vt., its fourth in the state and 17th in the New England area. Based in Orange, Mass., Pete’s Tire Barns is the 66th largest independent tire dealer in the United States, according to the Modern Tire Dealer 100.

Mitas upgrades Serbian plant Mitas reports it will spend 3.5 million euros to upgrade its factory in Ruma, Serbia. The factory is strategically placed to supply the Russian Federation. The Ruma factory, built in 1981, produces agricultural tires. Mitas acquired the plant in 2008.

TGI celebrates 20 yearsTire Group International LLC (TGI) recently celebrated 20 years as a wholesale tire distributor. TGI has developed four house brands in the last 20 years; Astro, Cosmo, Luna and Industar.

bites

“We’ve listened to our customers and designed one of the most comprehensive retail dealer programs in the industry,” says Bridgestone’s John Baratta.

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MTD April 2012

I s someone knocking on your door to buy your business? If not, someone soon may. Merg-

ers and acquisitions in tires is in high gear. Pep Boys is being acquired by a private equity fi rm, TBC is buying Midas Muffl er, Monro Muffl er Brake is buying Kramer Tire and wholesal-ers are being consolidated at a rapid pace. With the tire business having been a bit sluggish recently, those having strong fi nancial strength (and possessing a long-term view) are seizing the opportunity to make acquisitions at what sellers believe are att ractive prices while the buyers believe they are gett ing a bargain. I expect this trend to continue as long as the cost of money is so cheap.

Monthly surveyA number of independent tire dealers were

surveyed concerning current business trends. Except for tire prices and costs, the results of the February 2012 survey are compared with those of February 2011.

Growing economy off ers hope for futureAccording to our dealer survey, roughly

47% of passenger tire dealers believe business will improve over the next six months while 47% believe it will stay about the same. Th e remaining 6% believe it will worsen. As for truck tire dealers surveyed, 57% see business staying about level while 43% see business improving. Improving U.S. economic conditions is the primary driver of optimism as month aft er month dealers site steady (but slow) growth.

Flat volumes indicate U.S. growth is in balance

According to dealer reports, on average, retail sales of new replacement passenger tires were fl at when compared with February 2011. Th e biggest concern at this time last year was rising gas prices and this time around prices at the pump are even higher (February 2012 — $3.58/gal. vs. February 2011 — $3.20/gal.). Will a growing U.S. economy be enough to overcome high tire and gas prices? Right now it seems to be in balance with fl at volume growth in February, but only time will tell. Truck tire sales increased 1% in February, despite higher diesel prices. Retreaded tire sales increased 9% in February aft er falling 3% last month. Surging raw material costs have lessened the odds of price decreases any time soon and perhaps has persuaded truck operators to retread instead.

Margins are gett ing tougher to hold for premium tiresIn comparing the month of February 2012 with January

2012, average costs for size 215/60R16 major brand tires were up 1% while selling prices were down 2%. Th e average cost for a 215/60R16 private brand tire was up 1% while the selling price was up 2%.

Pricing seen as a normal to very fi rmIn February 2012, 43% of passenger tire dealers saw pricing

as normal while another 36% saw it as very fi rm. Th e remaining 21% saw it as aggressive. On the other hand, 67% of truck tire dealers saw pricing as very fi rm while 25% saw it as formal and 8% saw it as aggressive.

Truck inventories seen as in line with businessTh e survey indicated that 50% of passenger tire dealers

believed inventories were in line with current business levels, while 43% of surveyed dealers believed inventories were too

high. Th e remaining 7% of dealers felt inventories were too low for current demand. Roughly 77% of truck tire dealers we surveyed indicated inventories were in line with current business levels, while 15% felt inventories were too high. Th e remaining 8% felt inventories were too low.

Service revenues are strong and steady Dealers who provide auto service reported that 34% of rev-enues, on average, were generated by service during February. Dealers indicated that service business grew by 7% in Febru-ary 2012 vs. February 2011. Service business has been great for most dealers in an other-wise volatile tire market. ■

Analyst Saul Ludwig is a managing director with Northcoast Research Holdings LLC based in Cleveland, Ohio. He concentrates on the tire and chemical industries. He has been writing for Modern Tire Dealer since April 1975.

Ludwig Report

‘Mergers and acquisitions in tiresis in high gear,’ says Ludwig

By Saul Ludwig

How dealers view their near-term businessDealers OCT NOV DEC JAN(R) FEB(P) FEB(11)

Passenger tireWill improve 43% 33% 38% 46% 47% 43%Will worsen 0% 13% 6% 23% 6% 0%Will stay level 57% 53% 56% 31% 47% 57%

Truck tireWill improve 38% 25% 39% 60% 43% 80%Will worsen 0% 8% 8% 10% 0% 0%Will stay level 62% 67% 54% 30% 57% 20%R-Revised P-Preliminary

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By Bob UlrichPart 1 of 2

The Automobile Dealers’ Association has provided an irresistible incentive to have its members really work to enlarge the organization,” read the item

in the September 1920 issue of Tires, the predecessor of Modern Tire Dealer.

“Harry Gardner, executive secretary, conceived the brilliant idea of obtaining a dozen baseballs personally autographed by Babe Ruth, the King of Swat, and then off ering them as prizes to the fi rst 12 members to bring

in an application for membership from a New York dealer. An affi davit is given with each baseball, guaranteeing the genuineness of Babe Ruth’s signature.”

Th e draw of sports fi gures and sports teams has been coveted by associations and businesses since the turn of the last century. Th eir appeal can be long-lasting; 92 years aft er the “brilliant idea” by Harry Gardner, GITI Tire (USA) Ltd. featured Babe Ruth in its latest MTD ad!

It seems like everyone is heavily relying on sports marketing to increase their sales. Independent tire dealers are no exception. In the fi rst of a two-part series on sports marketing and its eff ect on our industry, we asked three

Sports marketing

Sports marketing from the retailer’s perspective

Is it better to associate your brand with a spokesperson or a team? Or both? Th ese three independent dealers have the answers, and are willing to share

Sometimes collegiate athletics rule. Dunn Tire sponsors the St. Bonaventure basketball team.

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FOR MORE INFORMATION, GO TO COOPERZEON.COM OR CALL 1.800.847.3777

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prominent independent tire dealers about their programs. What are the pros and cons of sponsoring a team or hiring a celebrity spokesperson? Is it cost-eff ective?

Th e three dealers are: Dunn Tire LLC, a 31-store chain based in Buff alo, N.Y.; CJ’s Tire & Automotive Services, a 12-store chain based in Birdsboro, Pa.; and Sullivan Tire Co. Inc., a 56-store chain based in Norwell, Mass.

Dunn Tire: NFL and NHLDunn Tire’s 31 locations stretch from

Erie, Pa., to Syracuse, N.Y., which is why its sponsorship of the National Football League’s Buffalo Bills is a no-brainer, according to Chuck Haring, director of marketing and advertising. Partnering with Kumho Tire U.S.A. Inc. also helped.

“In western New York, the Buff alo Bills represent one of the most powerful brand associations available to a marketer,” he says. “We partnered with Kumho Tire on this, as they are using sports marketing associations in some of their key markets to build their brand awareness.

“Dunn Tire already has high awareness levels in our footprint, but the marketing partnership with the Bills off ered us a chance to associate our brand directly with the Bills and put our marketing mes-sage in front of Buffalo Bills fans and followers through Web-based media, in-stadium media, and e-newslett ers and special electronic messages. It was criti-

cal for us and Kumho that we leveraged this partnership to drive retail activation and sales. We were able to do that with ticket backs, game day program ads and electronic coupons.”

Dunn Tire also sponsors the National Hockey League’s Buff alo Sabres in part-nership with Bridgestone Americas Tire Operations LLC.

“We saw a great opportunity to partner with Bridgestone and the Sabres because of Bridgestone’s status as the offi cial tire of the NHL,” says Haring. “It was logical for us to put together a program capitalizing on Bridgestone’s high awareness level amongst NHL fans. Plus, the Buff alo Sabres have one of the most devoted fan bases with some of the highest market penetration in the NHL. The Sabres control their own television broadcasts, so we were able to build in Bridgestone/Dunn Tire co-branded TV spots in highly rated game broadcasts.”

At the college level, the dealership spon-sors University at Buff alo athletics and St. Bonaventure basketball. “We also have the naming rights to a local racetrack in Buff alo called Dunn Tire Raceway Park.”

All Dunn Tire’s sponsorships are team-oriented. There are no celebrity spokespeople.

“We prefer not to associate our brand with anything other than our brand,” says

Dunn Tire teamed with Kumho to pro-mote its association with the Buffalo Bills. This window cling is one example.

‘You know you are moving the

needle, but you don’t

know how far.’ Chuck Haring, Dunn Tire

Quik-Link: 800-687-1557 ext. 14111




MTD April 2012

Sports marketing

Haring. “We spend a lot of time and money making sure we deliver to the customer what we say we will deliver.

“We promise the customer ‘Service You Deserve. Profes-sionals You Trust.’ Th e minute you put your brand image in the hands of someone outside of your company, you run the risk of your image being aff ected in some way that you don’t have control over. We don’t want to go down that road.”

Haring admits it is “extremely diffi cult” to measure Dunn Tire’s return on its sports marketing investment.

“I’ve used the words ‘branding’ and ‘awareness’ a lot, but that is what most of sports marketing is. And unless you do before-and-aft er consumer surveys, or build in a response or activation mechanism of some kind, it’s hard to know what level diff erence the marketing makes.

“You know you are moving the needle, but you don’t know how far. For our Bills and Sabres sponsorships, we built in a measurement device in the form of a coupon good for dollars off Kumho or Bridgestone tires when bought at Dunn Tire. We’ve seen a lot of these come into our stores.”

Th e investment varies wildly, depending on the sponsor-ship, he says.

“For major sports teams such as NFL or NHL, it can be very expensive. But programs can be tailored for almost any budget.

“Local colleges and universities can be much more aff ordable, and off er great exposure to the campus community including students, faculty and staff . And many of them have employee discount programs that you can get your business involved in to get store traffi c.”

CJ’s Automotive: Minor and major leaguesCJ’s likes to strategically place its signage where the action

is, whether that be inside FirstEnergy Stadium during Reading Phillies minor league baseball games, or courtside at Wells Fargo Center, home of the National Basketball Association’s Philadelphia 76ers.

Th e new partnership with the Phillies will last fi ve months. “We have a signifi cant sponsorship there in signage, in game activities, giveaways and more,” says Bill Bainbridge, director

of marketing. “I think the minor league baseball partnership has all the benefi ts for a regional retailer (that) the big boys get from their home plate signage-plus.”

FirstEnergy Stadium draws between 8,500 and 9,500 fans for every home game.

Bainbridge says he approached Michelin North America Inc. with a co-op idea for signage at 76ers games.

“It was a discounted deal that we think has been very good

for us. Tying our brand, with Michelin, to a pro sports franchise and their other sponsors has generated quite a few brand impressions and helped raise the perception of our company. And with the deal, we got a few tickets to a few games that we used to perk customers and employees.”

CJ’s also is sponsoring the Philadelphia Phillies pre-game radio show on the major league baseball team’s fl agship station, 94WIP, a CBS affi liate.

“Th is is a big deal, as the show will run one hour before the games, most of which start at 7 p.m. so we get the prime p.m. drive time of 6 to 6:30 when many people are either still commuting or fans are on their way to the ballpark.”

Th e three sponsorships cater to CJ’s core customer base, according to Bainbridge. “We think these associations will be very good for our brand and also good advertising opportuni-ties to promote sales, events, etc.”

About 70% of these “investments” will be co-oped with one of CJ’s suppliers (Michelin, Hankook Tire America Corp., Falken Tire Corp. or Yokohama Tire Corp.) and about 30% will be out-of-pocket marketing expense.

‘Measuring ROI is not defi nitive or all-inclusive.’

Bill Bainbridge, CJ’s Automotive

”Tying our brand... to a pro sports franchise has helped raise the perception of our company,” says Bainbridge.

22


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MTD April 2012

Sports marketing

“Measuring ROI is not defi nitive or all-inclusive,” he says. “We can measure the response to our calls to action, store traffi c and such that is measurable. And, of course, with all signage, we get reports about impressions, but the value of this measurement is always subject to interpretation.

“For me, sports marketing is about long-term branding and aff ecting consumer perception about CJ’s. It’s about brand association. It’s about having fun with consumers, corporate customers, and employees.”

Sullivan Tire: Celebrity spokesmanTh e list of Sullivan Tire’s current affi liations is a long one.

It starts with baseball, specifi cally Major League Baseball’s Boston Red Sox; minor league baseball’s Pawtucket Red Sox, Portland Sea Dogs and New Hampshire Fisher Cats; and the Cape Cod Baseball League.

Th e dealership also sponsors the NHL’s Boston Bruins and the team’s American Hockey League affi liate, the Providence Bruins; the Boston University hockey team; Providence College hockey and basketball; Boston College football and basketball; Keene State College athletics; and the University of Maine Black Bears.

Unlike Dunn Tire or CJ’s Automotive, Sullivan Tire, which does business as Sullivan Tire & Auto Service, also has teamed up with a celebrity spokesperson: Dustin Pedroia, all-star second baseman for the Boston Red Sox. Th e partnership has lasted fi ve years.

“With any branding decision, there is always an element of

risk,” says Paul Sullivan, vice president of marketing. “With sports fi gures, there is certainly the risk of shelf life, and the type of person they are in the community.

“As you incorporate celebrities such as sports fi gures into your brand, it’s important to be sure that they represent the values of your company, the communities in which you serve

and the fan base. Furthermore, do they have a stake in the community? Are they raising a family? Have they made your city their home? Are they involved in charities?”

In the past, Sullivan Tire has partnered with other sports celebrities, including baseball hall of famers Jim Rice and Dennis Eckersley and Boston Celtics hall of fame guard Tommy Heinsohn.

“When you are sponsoring a team you are dealing with the league,” says Sullivan. “Th e rules are more stringent and there is a greater threshold of entry. Sponsoring a team does, however, give you the advantage of using the team logo. With a player you have more fl exibility and there is a recognizable face.”

To evaluate its branding eff orts, Sullivan Tire conducts a brand index study every three years. Th e study is designed to measure the company’s top-of-mind awareness in the market.

“Our affi liation with Red Sox baseball helps us plant and cultivate our branding seed,” says Sullivan. “Th e Red Sox fan base reaches all over New England and beyond. Th ey have a very diverse and loyal fan base. As an example, because of Red Sox baseball, we had instant name recognition when we opened our fi rst location in Maine several years ago.

“Sports marketing is just part of our branding recipe. Th ere is also the public relations eff orts, grassroots marketing cam-paigns, community outreach, non-profi t board participation — and now social media plays a heavy role in our branding and communication eff orts.”

Sullivan says the cost is shared. “As long as we continue to buy tires, there is a level of co-op support.”

A successful marketing campaign does not have to have a “big major league spend,” according to Mark Gillard, Sullivan Tire’s advertising and marketing manager.

“Last year, we purchased a block of Th anksgiving day high school football tickets in several of our markets and gave the tickets away at locations. No purchase necessary. It was a big hit in the community, and it drove traffi c to the locations during this unusually mild New England winter season.” ■

In part two of our series in May, we look at sports marketing fr om the tire manufacturer’s perspective.

‘As you incorporate celebrities such as sports fi gures into your brand, it’s important to be sure

they represent the values of your company,

the communities in which you serve and the fan base.’

Paul Sullivan, Sullivan Tire

Paul Sullivan, Misty the dog and Boston Red Sox second baseman Dustin Pedroia have been featured in TV com-mercials (check out www.youtube.com/sullytire).

24


http://www.youtube.com/sullytire

Quik-Link: 800-687-1557 ext. 14113



MTD April 2012

By Bob Bissler

Off ering nitrogen infl ation service is one way to bring new and existing customers into your shop — and to keep them coming back.

“It’s not what nitrogen is that makes it a great infl ation medium; it’s what it’s not,” says Jay Lighter, president of NitroFill Inc. “Th e whole concept here isn’t nitrogen. Nitrogen is an inert gas, so by defi nition it’s nothing. And that’s what you want in your tires — nothing but pressure.”

NitroFill off ers nitrogen generation systems as part of a tire infl ation maintenance program. “If you grasp a tire infl ation maintenance program, you’re leveraging the only service that every car needs every month,” says Lighter. “Look in any owner’s manual. Every car manufacturer, every tire manufacturer, the federal government, agency aft er agency, says ‘Check your tires every 30 days.’”

Nitrogen diff uses through tire walls more slowly because it has larger molecules than air, thus maintaining tire pres-sure bett er, say industry experts.

“I think it’s continuing to gain acceptance and people are looking for less expensive options,” says Rob Phillips, product manager for Gardner Denver Inc. “Th at’s part of what is going to drive the product.”

Phillips says sales of nitrogen generation equipment were depressed since before the recession. But now sales have picked up and have rebounded nicely.

According to Modern Tire Dealer’s January 2012 Auto Service Study, 15.7% of tire dealer respondents plan to

buy nitrogen generation equipment in the next 12 months; 3.9% plan to lease equipment in the next 12 months.

If you are among those planning to acquire or upgrade nitrogen generation equipment, here are the latest products in the aft ermarket.

Branick Industries Inc.Branick Industries’ says the 465

Mobile Nitrogen Infl ation System is available at an economical price. Th e system has six conversion infl ator ports capable of handling duallies or spares.

Th e BlockHead automatic tire infl ator provides quick, hands-free tire infl a-tion, and features a 30-gallon tank for fast conversions. It allows you to fi ll a passenger tire in four to six minutes and a light truck tire in 10 to 12 minutes.

“We designed the Model 465 to be an option for those wanting quality and reliability in a nitrogen system at an aff ordable price,” says Brian Brasch, president of Branick Industries. “It is exactly like our mobile membrane units without the bells and whistles.”

Th e mobile unit comes with a seven-year membrane warranty, five years of free fi lters and has a purity port to ensure complete accuracy.

Gardner Denver Inc.Th e Champion Nitrogen

Advantage tire infl ation system from Gardner Denver comes with four 25-foot inflation hoses. It has an operating tem-perature range of 40 degrees to minus 150 degrees Fahrenheit. Th e company says the unit is installed easily and connects to the existing compressed air supply to generate nitrogen in minutes. Th e unit features membrane technology and requires no maintenance.

Th e Champion Nitrogen Advantage comes with a hand-held nitrogen analyzer for easy testing, and its compact design requires minimum space. Its coalescing and particulate fi lter eliminates moisture and contaminants prior to entering the membrane, so a carbon prefi lter is not required, the company says.

Th e unit has fi lter replacement indicators that will let the operator know when fi lters need replaced. It also has an automatic shutoff that halts air consumption while the unit is not in operation.

Th e company also off ers the Auto Fill Cart with four discharge hoses which are connected to the vehicle’s tires. Th e operator sets the controller to the desired pressure and starts the system, which automatically purges all four tires and refi lls them with nitrogen to the set pressure. Th en it purges the tires again and refi lls the tires for a second time for a nitrogen purity level of between 95% and 98%.

NitroFill Inc.NitroFill’s latest product in its growing line of nitrogen

generation and conversion systems is the new NitroFill E-135. Th e E-135 converts shop air into high purity (up to 99.9 %) nitrogen, providing an endless supply for top-

Nitrogen equipment

Hot topic: tire infl ationTh e latest nitrogen generation equipment gives you plenty of options

Gardner Denver Inc.’s Auto Fill Cart automati-cally purges all four tires and refi lls them with nitrogen to the set pressure.

Branick Industries’ 465 Mobile Nitrogen Infl a-tion System features PRISM membrane technology.

26


Quik-Link: 800-687-1557 ext. 14114



Quik-Link: 800-687-1557 ext. 14115




off s and conversions. NitroFill says the E-135 is economi-cal, starting at less than $2,000, and combines a high-performance 3 cfm nitrogen generator with an automated electronic tire infl a-tor to provide fast single tire nitrogen conversions as well as instant, accurate top-off s.

To use the E-135, select the desired

infl ation value, connect the air chuck to the tire valve and wait for the beep. Th e E-135 automatically infl ates or defl ates any tire to the desired value in seconds.

Parker Hannifi n Corp.Parker Hannifi n Corp. has introduced

the TireSaver TS018-Wand, a manual nitrogen tire infl ator.

Th e TireSaver TS018-Wand is a robust, lightweight, portable nitrogen tire infl a-tor that can be used to infl ate the tires on a wide variety of vehicles, including cars and light trucks, motorcycles and trailers. When connected to an existing compressed air line, it will continuously produce an on-demand nitrogen supply.

Th e exchangeable membrane cartridge technology, developed by Parker Hannifi n, is designed to service approximately 10,000 tires (1,000 vehicles) with nitrogen. It is also used as a top-off tool for tires already fi lled with nitrogen, thereby enhancing a dealership’s nitrogen infl ation program, says the company.

Th e TireSaver TS-018-Wand will quickly yield multiple benefi ts to dealers, including minimal investment cost, an att ractive profi t margin and high sales potential,

the company says. It off ers a simple de-sign, ease of use and an inexpensive price point to provide an “impressive return on investment,” says Parker Hannifi n. Th e TireSaver TS018-Wand will improve the availability of nitrogen for tire fi lling, allowing more consumers to realize the benefi ts of nitrogen tire infl ation.

PCL Air TechnologyPCL Air Technology says it is keeping

up the pressure on increasing safety and protecting the environment by demon-strating its advanced products to meet California Air Resources Board (CARB) standards to the U.S.

California’s law governing accurate tire pressure is aimed at increasing fuel effi ciency and road safety, and stipulates that all tire infl ators must deliver infl ation to an accuracy of +/– 2 psi, a move that CARB believes could save 75 million gallons of fuel per year.

Th e ACCURA QUBE is a space-saving solution to providing accurate infl ation. Th e 6-inch x 6-inch unit off ers fast and accurate tire infl ation within a simple, safe, state-of-the-art design.

It features three modes: standard infl ate/defl ate, tire shop (featuring overpressure) and nitrogen (top off and complete purge). All the repair technician needs to do is preset the required pressure and place the chuck on the tire; the in-built auto-start function does the rest.

Th e QUBE is designed to be simple and space-saving. It has the programmability and customization of more expensive models, is easy to use and also accurate, notes PCL. ■

Nitrogen equipment

The ACCURA QUBE from PCL Air Tech-nology was designed to meet Califor-nia’s strict tire infl ation regulations.

NitroFill’s E-135 pro-vides quick, accurate nitrogen conversions.

Parker Hannifi n’s TireSaver TS018-Wand can be connected to an existing compressed air line to produce nitrogen on-demand.



MTD April 2012

T he retail sales counter is a kill zone. Recently I was in an Apple retail store,

and as a marketing guy, I can’t help but pay close att ention to retailer/consumer behavior. Th ere was a lot of touching going on; customers were watching demonstrations of the goods. Tabletop counters were full of Apple products, and there were plenty of people checking out the latest items Apple had to off er. Apple sales associates were interacting with customers, and people were walking out of the store with bags loaded with expensive and value-packed items. Believe me; I was caught up in the activities. It’s exciting for me, a former counter guy, to feel the energy and hear the enthusiasm in that retail environment.

In the movie “Top Gun,” Maverick (Tom Cruise) and his Radar Intercept Offi cer (Anthony Edwards), nicknamed Goose, walked into a bar looking for a good time. Maverick commented to Goose, “It’s a target-rich environment.”

Th e same is true in most retail environments. Th e customers in the Apple store were there to check out the products and buy. In a retail tire and service store, customers are not there to stand around and demo tires. Customers don’t hang out in tire stores. Th ey are there to buy; they are there to be sold.

It’s harder to lose a sale than make a sale!Th e retail tire sales counter is a target-rich environ-

ment. Regardless of the advantages of a target-rich, ready-to-buy, captive customer, I have seen hundreds walk out of stores. Even worse, I’ve seen customers walk out aft er sales presentations.

Rarely does a customer come into the store with such a diffi cult set of demands that a retailer cannot satisfy or fi nd a way to close a sale. I say “rarely,” however, I’m fully aware of the funny and bazaar things that happen to help keep life interesting and challenging.

I’d like to address fi ve common pitfalls that counter staff should avoid, and when avoided, will improve their kill rate in the kill zone.

1. Stop talking too much. Take time to listen. Let the sale come to you. Not every customer knows exactly what to ask for or how to describe their concerns, so listen, and then ask questions. Even if you know the answer, wait, be patient.

I remember watching a customer trying to describe a front brake noise, and the store manager interrupted and barked at her, “You need a simple hang and turn.” She had no idea what

a “hang and turn” was. She was speechless. She then pulled her own hang and turn; she hung a right at the sales counter, turned and left the building.

2. Quit trying to control the conversation. People don’t like to be controlled or bullied. I’ve witnessed sales people trying to control the conversation and win every point. Th ey seem argumentative. Very quickly a wall goes up between the sales person and the potential customer. Walls are not good; walls restrict and divide and seldom lead to sales or happy customers. A conversation is natural. Again, let the sale come to you; be patient and ask open-ended, fact-fi nding questions.

3. Stop thinking you know it all. Take the time to learn about your customers’ needs, not just their product or service needs, but how they would like to be sold, how they would like your services presented to them. Products and services are only part of what is important in delivering quality service. Some customers want lots of assurances. Others, like the engineering type, want lots of answers to what may seem like endless, meaningless questions. Learn to recognize needs.

4. Just because the customer is negative, doesn’t give you the right to be likewise. Some customers are negative,

some are really negative, and some are just ridiculous. You can’t respond in kind. I have found that negative customers prefer to be the most negative person in the conversation. If you are negative, the negative customer will almost always try to out-negative you, and believe me, they will win! You will have to back down at some point. Be understanding without being condescending.

5. Weak closing comments. Hey, when it’s time to close, close! Assuming you did all the listening that was necessary, you answered all the questions and overcame all the objections, off ered all the right products

and services for all the right reasons, why would you off er up a weak close where you are likely to lose the sale aft er all that eff ort? Give it an all-out close, with conviction!

It’s harder to lose a sale than make a sale — especially in the retail target-rich environment known as the retail sales counter! Don’t blow it! Kill it! ■

Wayne Williams is president of ExSell Marketing Inc., a “counter intelligence” fi rm based in La Habra, Calif. He can be reached at [email protected]

Counter intelligence

Don’t blow it! Kill it!How to close a sale in a target-rich environment

By Wayne Williams

30




The Tire Industry Association’s 57th annual Off -Th e Road (OTR) Tire Conference set an att endance record of 495 dealers, retreaders and suppliers.

Th e conference took place Feb 15-18, 2012, in Rancho Mirage, Calif.

At the event’s opening session, Angie Jones, general manager, mining and strategic services for the Bridgestone Commercial Solutions Group, covered tire production numbers. Jones said that if commercial housing recovers in the U.S. this year, demand for OTR tires could exceed the peak year of 2007.

“When you compare statis-tics, in 2011 we almost got back to that 2007 level,” said Jones.

Mining tires should con-tinue to see strong numbers as global demand increases. Global demand for oil, coal and steel will remain strong.

Jones said the U.S. indus-try has seen sharp unit sales growth, especially over the last three years. Total OTR unit numbers include construction, aggregate and mining equip-ment tires with 24-inch wheel diameters or larger.

Jones compared total OTR unit numbers for the last fi ve years: 310,504 in 2007; 288,376 in 2008; 163,508 in 2009; 232,790 units in 2010; and 294,641 tires in 2011. Of those totals, OE sales repre-sented 37% in 2007, 36% in 2008, 22% in 2009, 33% in 2010 and 41% in 2011. OE 2011 OTR unit sales were about four times what they were in 2009.

“If you look at the replacement channel in a litt le more detail, last year three-fourths of the units shipped were for vehicles used in the construction segment, with 11% for aggregates and 10% for mining,” she explained.

“If we take those same units and apply an approximate dollar value to them, we can take a look at our market on a dollar value basis. In that case, mining tires actually made up half of the dollar value in our industry last year. Construction was 30%, aggregates 18%.”

While there is plenty of optimism in the industry, Jones said some outside global infl uences are creating uncertainty.

One of them is the eurozone crisis. Another is China, where there are indications economic growth is slowing down.

But other infl uences are right here in the United States. “Th is year we have a presidential election, so a lot of

major decisions will simply be put on hold until we get past this election and see who is going to be in offi ce going forward,” Jones said.

OTR manufacturers key-in on pricing, technologyOne of the highlights of TIA’s OTR Conference was the

tire manufacturers’ panel discussion moderated by Modern Tire Dealer Publisher Greg Smith. Th e issue of pricing came up fi rst, and the panelists were frank in their comments.

“We certainly feel that there will be price increases in 2012,” said Mike Baggett , southeastern sales manager, Yokohama Tire Corp.’s OTR division. “With the current oil situation, we’re going to see gas and fuel prices increase overall. If you look over the trends since 2000, there have been a lot of peaks and valleys. Th e price of natural rubber is $2.80 a pound. Like any commodity, you’ll see those prices fl uctuate.”

“As you look at the cost of materials that are out there and natural rubber fl uctuation in pricing, we have to be fi scally responsible,” said Roger Lucas, vice president of sales and marketing, Michelin Earthmover Tires. “We have to perceive price increases.”

“Since the end of last year, we’ve seen already about a 15% increase in the price of natural rubber,” said Shawn Rasey,

vice president of Bridgestone Mining Solutions. “We’ll be under price pressures from the raw material standpoint.”

“We’ve watched the rubber price very closely,” said James Wang, marketing and sales director of Techking Tires Ltd. “ We see mixed messages in the rubber price and we feel for the next few months the rubber price will be increasing moderately and not as aggressively as we experienced at the beginning of last year.”

On the subject of using recycled tires and/or rubber as a raw material, Bridgestone’s Rasey said his company is doing a number of things in that area.

Commercial Tire Dealer™

OTR industry: A positive outlookGlobal OTR demand is rising;

strongest growth is in the mining segment

Angie Jones, general manager, mining and strategic services for Bridgestone Commer-cial Solutions, shared her optimism about the state of the OTR industry at TIA’s OTR Conference.

ALSO IN CTDTop 100 Retreaders in the U.S. . . . 34

Commercially Viable . . . 38



MTD April 2012

OTR tire conference

“Th e key issue for us — and I’m sure for the manufacturers as well — is to make sure that when we work materials back into our product, the performance is equal to or bett er.”

Rasey said that retreading is the fi rst step in recycling, and Bridgestone continues to have a strong focus on that with its product lineup.

The panelists also discussed airless OTR tires. Baggett said Yokohama is not looking into that at this time. However, Paul Hawkins, vice president of OTR sales, Titan Tire Corp., said his company is cur-rently experimenting with some smaller air-less tires. Bridgestone’s Rasey said he expects research on airless OTR tires to be ongoing, but it will be a challenge.

“I don’t see an im-mediate solution on big airless tires,” he said. “Th ere are a lot of dif-fi cult variables to try and manage and track that kind of research.”

On the subject of the shortage of natural rub-ber, Baggett said Yoko-hama’s challenge is to come up with a balance between synthetic rub-ber and natural rubber.

Rasey said Bridge-stone has looked at options with synthetic

and natural rubber alternatives. “We’ve looked at options to be able to switch them in and switch them out to substitute where we can.”

Wang explained Techking’s strategy for dealing with shortages: “For us to be prepared for shortage concerns, forecasting is very important.”

Titan’s Taylor: Mining is a priorityTh e keynote address at TIA’s OTR Tire

Conference was delivered by Morry Taylor, CEO and chairman of Titan International

Inc. “Th ere’s a shortage

of tires and everyone is increasing capacity,” said Taylor. “Th is year we’re going to prob-ably quadruple our capacity on the OTR side. We’re looking at a double-digit increase on the farm side this year.”

Taylor covered the status of Titan’s L a t i n A m e r i c a n business, which the company purchased from Goodyear Tire & Rubber Co. last year.

Titan acquired Goodyear’s Sao Paulo, Brazil, manufacturing plant, property, equip-ment and inventories in an agreement that allows Titan to sell

Modern Tire Dealer Publisher Greg Smith moderates the OTR tire manufacturers’ panel discussion with (L to R): Mike Baggett, Yokohama; Paul Hawkins, Titan; Roger Lucas, Michelin; Shawn Rasey, Bridgestone; and James Wang, Techking. (Photo by Peter Kuhn, CREATIVE VISUALS, www.pkcvmedia.com.)

Keynote speaker Morry Taylor, CEO and chairman of Titan International Inc., brought his unique perspec-tive of the OTR tire business to TIA’s OTR Conference. (Photo by Peter Kuhn, CREATIVE VISUALS, www.pkcvmedia.com.)

Quik-Link: 800-687-1557 ext. 1411632



http://www.pkcvmedia.com

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Goodyear-brand farm tires in Latin America and North America. Taylor said the plant will come on-stream this year, and he plans to increase South American revenue by 60% through added production capacity.

Taylor said Titan is still pursuing another Goodyear acquisi-tion that fell through last year, the purchase of its ag tire plant in Amiens, France.

Taylor said that this year the company will continue develop-ment of a 50 x 56.5-inch wheel. Also in 2012, Titan plans to add 20 new sizes and new tires.

Taylor also expressed the importance of Titan Mining Services, established last year to off er complete tire, wheel and track services for end users. Th e company’s fi rst location is in Fort MacKay, Alberta, Canada.

Taylor said the location was chosen to begin these services because of the great amount of equipment used in the region. Titan is partnering with Saskatoon Wholesale Tire Ltd., a company that has been in the area for a number of years and also represents Titan Tire.

“As we expand, Titan will be working with local businesses in all areas of the world,” said Taylor. “Titan is the only company worldwide who has the engineering expertise on wheels, tires and track components and we will be training many new technicians.”

Taylor also covered fi nancial projections for Titan, which will likely reach $1.4 billion in sales for 2011. He said the company plans to have 2012 sales of $2 billion, with a goal of becoming a $3.5 billion company within 18 months. ■

One TIA/RMA voice echoes across the nation

The Tire Industry Association’s (TIA) Off-The Road (OTR) Tire Conference had a special guest when it took place Feb 15-18, 2012, in Rancho Mirage, Calif.

Charles Cannon, CEO and president of the Rubber Manufacturers Association (RMA), attended the OTR Conference for the fi rst time. He was introduced by TIA Executive Vice President Roy Littlefi eld.

“Our two associations have had some high points and some low points in the past, but immediate Past President Mike Berra and current President Larry Brandt feel the industry must speak as one voice,” said Littlefi eld.

“We have had a mandate for a couple of years to work together,” Cannon revealed.

Cannon said he looks forward to TIA’s input and jokingly said he and Littlefi eld were “joined at the hip” as they march forward on the fuel effi ciency topic.

Both associations put forth a consistent front in ad-dressing a tire fuel effi ciency ratings hearing in San Francisco in early February and to oppose the proposed Maryland tire aging bill. The voice of TIA and RMA combined was heard, and Maryland legislation HB 729, the tire aging bill, is now dead for the year.

Quik-Link: 800-687-1557 ext. 14117




MTD April 2012

By Bob Ulrich

Domestic retreaders produced 15.3 million truck tire retreads in 2011, 7% more than they did

in 2010. Based on the expansion plans of the “Top 100” retreaders in the United States, those numbers will go up this year.

Some are replacing builders. Others are remodeling facilities. Almost all of them are optimistic, although casing availability remains an issue.

Looney’s Tire Service is installing a tracking system at its plant in Litt le Rock, Ark. McCarthy Tire Service Co. Inc., based in Wilkes-Barre, Pa., is investing in new equipment for all six of its shops.

Two of the largest OTR tire retread-ers in the country will up production in 2012. H&H Industries Inc. in Oak Hill, Ohio, already has added equipment, and plans to grow its product base “in markets such as port and industrial areas,” says President Noah Hickman. And B.R. Retreading in Glasgow, Ky., is adding a radial OTR tire mold.

When asked, “What are your retreading plans for 2012?” here are the comments from some of the commercial dealers on Modern Tire Dealer’s “Top 100 Retreaders in the U.S.” list.

Tom Bowman, vice president of the commercial division, Belle Tire Distributors, Allen Park, Mich.: “Busi-ness continues to grow in the retreading

arena since the fl eets continue using more retreads due to the escalating costs of new tires. We’ve seen productivity increase daily in all our plants.”

Richard Brahler II, president, Brahler’s Truckers Supply Co., Jack-sonville, Ill.: “We are expanding our capabilities by adding new modern equipment and retiring equipment that has run its useful life. Retread demand is very strong and we expect an increase in volume for 2012.”

Terry Westhafer, president, Central Tire Corp., Verona, Va.: “We are com-pleting a major expansion of AcuTread mold-cure retread capacity. We are also participating in the development of a new retread plant management computer system.”

Mike Berra, president, Community Tire Co., St. Louis, Mo.: “Over the past three years, we have added additional buffi ng, building and curing equipment to increase capacity and improve the quality of our product. We recently took delivery of another OTR press for 14.00R-24 through 20.5R-25 tires. We are expand-ing our off ering with new tread designs on two sizes, as well as adding two new sizes to our line.”

Fred Schmidgall, president, Morton Supplies Inc., Morton, Ill.: “We are in the process of adding 4,000 square feet of production and storage to the plant, and we are hoping to add a fourth chamber this year to get up to 400 tires a day.”

Jon Langerak, president, Wonder-land Tire Co. Inc., Byron Center, Mich.: “We are preparing for a 25% increase in retread production for 2012. In order to handle the growth, we are implementing a third shift into our production. We also intend to add several new pieces of equipment, including a new buff er, two new Cima presses (and) a new tread rubber extrusion machine.”

Only the top 50 retreaders are listed in this issue. Th ey include Bergey’s Retread Technologies in Franconia, Pa., which jumped a high of 16 spots to number 36 by increasing its truck tire retread production by 60%.

To see the “Top 100” list in its entirety, visit www.moderntiredealer.com. ■

Top retreaders

Prepping for growth Topp reetreeeadddersss seeee llligghhht aaat tthe ennnd ooof ttthhe chhhammmbeeer

Mark Muncy paints a fi nished retread at King Tire Service Inc.’s Bluefi eld, W.V., plant, the fi rst ContiLifeCycle facility in the U.S. King Tire made the “Top 100” list this year.

Quik-Link: 800-687-1557 ext. 1411834





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1 Wingfoot Commercial Tire Systems LLC/Goodyear

Fort Smith, Ark. 36 38 100 5,860 0 Goodyear Authorized Retread (UniCircle, precure, mold cure)

20,680

2 Bridgestone Americas Tire Operations

Nashville, Tenn. 34 25.5 25 4,080 6 Bandag (precure) 14,599

3 Southern Tire Mart Columbia, Miss. 18 23.4 0 3,825 0 Bandag (precure) 13,388

4 Purcell Tire & Rubber Co. Potosi, Mo. 5 16.4 170 1090 135 Goodyear (UniCircle, precure, mold cure, Flex-cure), segmented mold cure, precision cut treads

10,314

5 Snider Tire Inc. Greensboro, N.C.

6 15 200 2050 0 Michelin (Pre-Mold, Custom Mold) 7,515

6 Best-One Tire Group Monroe, Ind. 16 15 0 2,020 0 Bandag (precure) 7,070

7 TCi Tire Centers Duncan, S.C. 10 13 0 1900 0 Michelin (Pre-Mold, Custom Mold) 6,650

8 McCarthy Tire Service Co. Inc.

Wilkes-Barre, Pa.

6 6.7 132 1000 50 Bandag (precure and Continuum) 6,024

9 Northwest Retreaders Inc./Hudson-Odom

Portland, Ore. 1 N/A 25 210 105 Precure, mold, sculpture 5,608

10 Pomp’s Tire Service Green Bay, Wis. 11 N/A 103 1410 0 Bandag (precure) 5,110

11 Les Schwab Tire Centers Bend, Ore. 3 10.6 0 1225 10 Oliver (precure), Marangoni (RingTread precure), Galgo

4,748

12 B.R. Retreading Glasgow, Ky. 1 4.6 0 10 89 Segmented radial molds, Marangoni (cut tread)

4,129

13 Tredroc Tire Services Antioch, Ill. 5 5.5 50 1040 0 Bandag (precure) 3,725

14 Service Tire Truck Centers

Bethlehem, Pa. 3 8.4 40 950 0 Michelin (Pre-Mold, Custom Mold) 3,393

15 Bauer Built Inc., dba Bauer Built Tire

Durand, Wis. 7 6.6 10 950 0 Michelin (Pre-Mold, Custom Mold) 3,342

16 Bob Sumerel Tire Co. Erlanger, Ky. 6 5 0 880 0 Bandag (precure) 3,080

17 Jack’s Tire and Oil Management Co. Inc.

Logan, Utah 5 4.95 8 742 0 Michelin (Pre-Mold) 2,611

18 Parkhouse Tire Inc. Bell Gardens, Calif.

2 4.2 20 700 0 Bandag (precure) 2,484

19 Belle Tire Distributors Allen Park, Mich.

3 3.8 100 660 0 Bandag (precure) 2,480

20 C & M Tire (Cross Midwest Tire Inc.)

Kansas City, Mo. 3 5 50 600 6 Bandag (precure, Continuum) 2,461

21 Boulevard Tire Deland, Fla. 4 4.04 0 668 0 Bandag (precure) 2,338

22 New Pride Corp. Oakland, Calif. 2 3.5 0 640 0 Oliver and Daeho (precure, mold cure)

2,240

23 H & H Industries Inc. Oak Hill, Ohio 1 5.8 0 0 48 Mold cure, sculpture, precure 2,208

24 Community Tire Co. St. Louis, Mo. 1 2.3 150 40 35 Mold cure, segmented mold cure 2,005

25 Valley Tire Co. Inc. Charleroi, Pa. 1 3.4 40 550 0 Michelin (Pre-Mold) 1,993

26 Custom Bandag Inc. Linden, N.J. 3 3.3 66 500 0 Bandag (precure) 1,862

27 New Holland Tire Inc. Terre Hill, Pa. 2 2.95 5 500 2 Daeho/Elgi (precure) 1,851

28 Ziegler Tire & Supply Co. Massillon, Ohio 2 4 5 525 0 Michelin (Pre-Mold, Custom Mold) 1,846

29 Atlanta Commercial Tire Inc.

Forest Park, Ga. 3 N/A 15 510 0 Bandag (precure) 1,811

MTD Top 50 Retreaders in the U.S.



MTD April 2012

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30 McGriff Treading Co. Cullman, Ala. 3 3 28 503 0 Bandag (precure) 1,808

31 Craft Tire Inc. Uniontown, Pa. 2 3 0 0 38 Marangoni (Mammoth) and computer cut tread

1,748

32 Parrish Tire Co. Winston-Salem, N.C.

2 N/A 50 450 0 Bandag (precure) 1,660

33 Sullivan Tire Co. Inc. Norwell, Mass. 3 3.4 30 452 0 Bandag (precure) 1,633

34 White’s Tire Service Inc. Wilson, N.C. 1 2.75 35 318 8 Marangoni (RingTread precure), Oliver (Megamile precure), White’s Bead-to-Bead (mold cure), Bandamatic (precure)

1541

35 Allied Oil & Tire Co. Omaha, Neb. 1 N/A 0 405 0 Michelin (Pre-Mold, Custom Mold) 1,418

36 Bergey’s Retread Technologies

Franconia, Pa. 1 2.5 1 400 0 Marangoni (RingTread precure), other

1,402

37 T & W Tire and Retread Inc.

Oklahoma City, Okla.

2 4 0 400 0 Goodyear (precure) 1,400

38 RDH Tire & Retread Co. Cleveland, N.C. 1 5 0 0 30 Computerized strip and tread grooving, Bandag (Continuum)

1,380

39 Raben Tire Co. Inc. Evansville, Ind. 3 2.1 0 384 0 Michelin (Pre-Mold), Goodyear (UniCircle)

1,344

40 Dillon Tire Inc., dba Cross Dillon Tire

Lincoln, Neb. 2 2.4 0 347 2 Bandag (precure, Continuum) 1,307

41 Morton Supplies Inc. Morton, Ill. 1 1.9 0 286 6 Daeho (precure), Bandamatic (precure), Oliver (SureCure precure)

1,277

42 Callaghan Tire Bradenton, Fla. 2 N/A 20 340 0 Bandag (precure) 1,224

43 Redburn Tire Co. Phoenix, Ariz. 5 2.4 20 330 0 Bandag (precure) 1,189

44 Royal Tire Inc. St. Cloud, Minn. 2 2 2 280 3 Bandag (precure, Continuum) 1,121

45 Pete’s Tire Barns Inc. Orange, Mass. 2 N/A 30 295 0 Bandag (precure) 1,085

46 Strouhal Tire Recapping Plant Inc.

Hungerford, Texas

1 N/A 0 300 0 Michelin (Pre-Mold) 1,050

46 Colony Tire Corp. Edenton, N.C. 1 N/A 0 300 0 Michelin (Pre-Mold) 1,050

48 Hill Tire Co. Forest Park, Ga. 2 N/A 0 290 0 Marangoni (RingTread precure), mold cure

1,015

49 Looney’s Tire Service Little Rock, Ark. 1 1.96 0 283 0 Marangoni (precure), Pre-Q (precure), Daeho (precure)

991

50 California Retreaders Inc.

Fresno, Calif. 1 2 0 280 0 Michelin (Pre-Mold) 980

MTD Top 50 Retreaders in the U.S.

Each April, Commercial Tire Dealer ranks the “Top 100 Retreaders in the United States” based on the average amount of tread rubber used to retread different types of tires. Twelve pounds of rubber, on average, are used to produce one light truck tire retread, while 24 pounds are used to produce one medium/heavy truck tire retread. An average of 325 pounds is used to build one OTR tire retread. CTD awards one point for every seven pounds of rubber used per retread. Each light truck tire retread equals 1.7 points, each truck tire retread equals 3.5 points, and each OTR tire retread equals 46 points. Numbers are rounded to the nearest point.

The “Top Retreaders” list was started in 1988, when the top 10 retreaders were: Goodyear Tire & Rubber Co., ABC Treadco Inc., Pro-Tread Corp., Les Schwab Tire Centers, Edwards-Warren Tire Co., Northwest Retread-ers Inc., Ray Carr Tires, Radar Tire Inc., Purcell Tire & Rubber and McGriff Treading Co. (N/A = Not available.)

To see the second half of the “Top 100 Retreaders” list, visit www.moderntiredealer.com.

36



Quik-Link: 800-687-1557 ext. 14119



MTD_38.indd 1MTD_38.indd 1 4/18/12 10:45 AM4/18/12 10:45 AM




Quik-Link: 800-687-1557 ext. 14120



MTD April 2012

By Doug Trenary

S top and think about this for a moment: Conventional wisdom tells us that a retail operation — your inde-pendent tire dealership — is designed for walk-in

traffi c. So you spend money as an owner or manager on building a great store experience, att empting to drive in traffi c with advertising, promotions, merchandising and signage. And all the while you’re keeping the search on for the next winning location for expansion. All good. Continue those eff orts,

However, let’s talk about a “golden goose” for your store sales, a whole new level that will blow out your fi nancials.

In my last article, I challenged you and your team to “leave your store,” specifi cally for the store managers to take some time each week to go out and call on local, targeted businesses to introduce their store and invite potential customers to come in for tires and service. Let me emphasize, my solutions are not theory, but a real challenge that I have seen work countless times.

However, the percentage of tire dealers who actually do this is miniscule, although this is conventional retail

wisdom. And they admit their reluctance to me openly in person.

A few days ago in a live sales and leadership training ses-sion I was conducting for a large, multi-store tire dealership chain, we were touching on this issue of leaving the store to make sales calls. Th e owner stood up and said, “Guys, this is the hardest thing you’ll ever do as a store manager.” I certainly concur.

Now, in my world, hard means valuable! Success at this approach truly is the golden goose you’ve been looking for to tap sales you’re not gett ing now — to collect a whole lot of new money! Let’s dig in and go get some. Th e following are some hurdles that real tire and service store managers tell me they experience, and my answers to these issues.

Seven “SalesMind” keys for new sales/money from side sales calls

1. “We’ve never done this before.” So what? We were in the dark, too, until Th omas Edison created the light bulb. If you are a store manager, sit down with your assistant managers and counter sales people and announce you are making a commitment to call on businesses within a few

miles of the store to start — and you need their support. Th en put that commitment in writing.

At the training session, we brain-stormed also about who to call on to start. We decided that the best initial prospects were small businesses, car dealerships, commercial locations (i.e., contractors) with trucks, local schools, and any government facilities (i.e., police, fi re, city hall, etc.), within one to fi ve miles of the store.

2. “I have to be in the store to handle things.” You actually have another problem: You are not training, empowering and coach-ing your team to do the things you do — thus you’re trapped to do them yourself. Take your major tasks, one at a time — like inventory, reconciliations, ordering supplies, scheduling, etc., — and teach your assistant how to help you do those things to free up some of your time.

3. “What do I take to make calls?” Keep it very simple: Your business cards, a short company brochure or fl ier, and some sort of simple promotion to create bait to come in to your store — 10% off an oil change or alignment, buy three tires, get one free, etc. Always emphasize your great store service:

Business insight

New moneyHow SalesMinded dealers go get sales instead of waiting on them

Don’t know who to talk with at the prospect’s offi ce? Always ask for the company’s owner or manager. He’s the one who can make the buying decisions.

40


Quik-Link: 800-687-1557 ext. 14121



MTD April 2012

Business insight

“We can get you in and out quickly for tires, oil changes and alignments to save you time and frustration.”

4. “I’m too tired by the end of the day to make calls.” So am I. Do it in the morning. To start, do this for two hours fi rst thing in the morning (at the hours businesses open) on the same day of the week, such as each Wednesday. Build a patt ern where you plan those hours and alert your store team that that is where you will be, period — in the fi eld.

5. “What do I say?” A bett er question is, “What do I ask?” Put some questions in writing and go over them with yourself for a few minutes: How are you today? Is the owner or manager in? Are you familiar with our store down on Main and First? How many employees do you have? How many trucks do you have? Where do you currently have them serviced? Who do you buy tires from? Is there a time I could come back (talking to the owner) and make a short presentation about our store? Be a questioner and listener. What you need is information. Always thank those you call on.

6. “I don’t know who to talk to.” See the above — ask for the owner or head manager. Th ey make the decisions and are the ones who can get you access to the fl eet or employees’ personal vehicles to sell them tires and service. I had a client store manager tell me again recently that he got some new business from an air conditioning contractor who’s current tire/service shop couldn’t get to one of his trucks for service work. He picked up the phone and called my client/manager. Now, he and his store have the whole fl eet of 11 trucks — brand new money. All from one sales call.

7. “Th is makes me so nervous.” Th e Ancient Greek phi-losopher Plato said, “For a man to conquer himself is the fi rst and noblest of all victories.” Step back and ask yourself: What’s the big deal? So, I visit a few businesses in my area, drop off a few cards, smile, shake a few hands, and tell these folks where our store is — and that “we are the best, please come in!”

Here’s my personal promise to you: If you will leave your store and visit the businesses, schools, and city buildings within a few miles of your store (for just a few hours one day a week to start), you will have access to the new sales dollars you would most likely not get another way. Because if these buyers haven’t come in to your store by now, they are spending money at another dealership. Th ere may be only one reason for this — they just don’t know who and where you are, but they might buy from you if they did!

Go visit them, stop waiting, and get some new money! ■

Doug Trenary, president of Doug Trenary’s Fast-Track Inc., is an award-winning author, speaker and teacher who has helped companies of multiple sizes, including independent tire dealerships, increase sales and productivity since 1985. His book, “Th e SalesMind,” focuses on how to establish strong positions with yourself, your buyers — and your time. For more informa-tion, email him at [email protected] or call (404) 262-3339.

42



MTD April 2012

SUBJECT VEHICLE: 2005 Mercedes-Benz SLR.RELEARN PROCEDURE? No.SPECIAL TOOLS NEEDED? No.

The tire pressure monitoring system (TPMS) on the 2005 Mercedes-Benz SLR monitors the set tire in-fl ation pressures by using wheel sensor to send tire

infl ation pressure and air temperature data to the respective wheel antenna.

Th is information is then sent to the TPMS control unit, which evaluates the data and determines the position of the transmitt er from measured fi eld strengths. In the TPMS control unit, the air pressure activated and adjusted for each wheel by the driver is stored at the specifi ed pressure to be monitored.

A multifunction display in the instrument cluster shows current tire infl ation pressure information, or will display information to make necessary corrections to the system.

NOTE: Aft er a wheel is exchanged, the system is indepen-dently able to detect new wheels and to assign their build position.

To remove an old sensor, follow these steps. CAUTION: When reinstalling a previously removed tire pressure sensor

to a wheel, replace the grommet for the tire pressure sensor.1. While ensuring the valve stays in the 6 o’clock position,

remove the tire and wheel assembly from the vehicle. Remove the balancing weight(s) from the wheel. Drain TIREFIT sealant out of the tire. CAUTION: Do not apply compressive force during tire removal, or the tire pressure sensor may be damaged.

2. Position the pressing-off blade of the tire mounting device on the tire bead (not on the tire sidewall) opposite the valve. Pry inside and outside of the tire over the safety bead seats of the disk wheel.

3. Clamp the disk wheel in the tire mounting device. Coat the rim fl ange and the tire bead with soapy water.

4. Align the assembly head at a small distance to the disk wheel (see Figure 1). Position the disk wheel so that the valve is about 10 cm in front of the mounting head looking in the direction of rotation of the tire mounting device (see Figure 2).

5. Lever the tire bead with an assembly lever over the assembly lug, and pull off the tire. CAUTION: Do not retighten the internal torx drive bolt and union nut, or the sensor will be damaged.

6. While counterholding the valve body using a 2 mm pin inserted into the bore in the valve body, unscrew the union nut and remove the spacer ring (see Figure 3).

TPMS

Mercedes-Benz SLR:Diff erent reset procedures for early, late production

44



7. Unscrew the mounting screw, and remove the valve body and tire pressure sensor.

To install a new sensor, follow these steps. CAUTION: When installing a new tire pressure sensor, ensure it has the correct transmission frequency (315 or 433 MHz).

1. Guide the mounting screw through the hole in the ap-propriate tire pressure sensor and screw on the valve body about three revolutions. Insert the assembly in the disk wheel so that the bore in the valve body (for counterholding with the pin) points upwards.

2. Insert a 2 mm pin into the valve body bore. See Figure 3. Mount the spacer ring and push on the union nut until it abuts. Tighten the union nut to specifi cation. Remove pin from the valve body bore.

3. Press the tire pressure sensor gently into the drop center of the disk wheel, and tighten the mounting screw to specifi cation.

4. Note the ID code of the new sensor in the owner’s or maintenance manual.

5. To complete the installation, reverse the removal procedure. When pulling on the tire, position the wheel so that the tire pressure sensor is about 180 degrees opposite the mounting head. Observe the running direction of the tire, and stress the bead area as litt le as possible.

6. Ensuring the valve stays in the 6 o’clock position, install the tire and wheel assembly.

7. Reactivate the tire pressure sensor.In order to perform the appropriate reactivation procedure,

note the following. Early production includes Model 199 up to end number 000267 with kilometer scale, and Model 199 up to end number 000302 with miles scale. Late production includes Model 199 as of end number 000268 with kilometer scale, and Model 199 as of end number 000302 with miles scale.

Early production1. Turn ignition switch OFF.2. Ensure the infl ation pressure of all

four tires is as specifi ed on the tire placard.3. Turn the ignition switch to the ON

position. Th e standard display menu will appear in the left and right multifunc-tion displays on the instrument cluster.

4. Using the up or down arrow butt on (located on the left side of the mul-tifunction steering wheel), select the tire pressure monitor. In the bott om center of the instrument cluster, press the instrument illumination rheostat and reset butt on.

5. Press the “+” butt on. Th e multifunction display will now show for about two seconds.

6. Th e multifunction display will show a confi rmation screen.7. Once the engine is started, the pressure value will be

displayed immediately without numerical values (-).8. Drive the vehicle for about 10 minutes. Current tire pres-

sure will be displayed, and the activation process is complete.

Late production1. Turn the ignition switch to the OFF position.2. Ensure that infl ation pressure of all four tires is as specifi ed

on the tire placard. 3. Turn the ignition switch to the ON position. Th e standard

display menu will appear in the left and right multifunction displays on the instrument cluster.

4. Using the up or down arrow butt on, select the tire pressure monitor. Using any other butt on operations on the multifunc-tion steering wheel will terminate the activation process.

5. Press the “+” butt on. Th e multifunction display will now show for about two seconds.

6. Th e multifunction display will now request reactivation of the system. In the bott om center of the instrument cluster, press the instrument illumination rheostat and reset the butt on.

7. Th e multifunction display will now confi rm that the system has been reactivated, and then will display instructions to drive.

8. Drive the vehicle for about 10 minutes. Current tire pressure will be displayed, and the activation process is complete. ■

Information for this column comes from Mitchell 1’s ”Tire Pressure Monitoring Systems Guide” for domestic and import vehicles through 2010. Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry for more than 80 years. For more information, visit www.mitchell1.com.

Figure 3Figure 2Figure 1

Quik-Link: 800-687-1557 ext. 14122



http://www.mitchell1.com









www.moderntiredealer.com



www.ezliftconveyors.com

www.release-the-beast.com

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mailto: [email protected]


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MTD April 2012

Your turn

Company off ers management of social media streamsDear Editor:

I have a question concerning your February article “A Twit-tering tire dealer – you are kidding, right?”

What service is the writer referring to that automatically responds to Tweets? He wrote: “It turns out there are actually services that will monitor traffi c on Twitt er and immediately respond on your behalf.”

I’m aware of services such as Twellow that provide auto statements like “Th ank you for following me.”

John Taylor, President/CEOJTMarCom

Nashville, Tenn.Th e writer, Roger McManus, tells us: “I have been working with

Jim Richardson, who has a company named MobiDITT O. One of the products is called MobiSOCIAL. With this they manage all of the social media streams, including Twitt er. It is outgoing and responsive using real U.S.-based humans. I would be happy to speak with your reader and tell him more about it (call me at (702) 809-8044), or Jim can be reached at Jim@mobiditt o.com or at (559) 250-5520.”-Ed.

Next generation can call a localtire dealer for correct informationDear Editor:

Concerning the article on page 24 of your February issue, “Your customer, the next generation:”

I believe the writer is mistaken. Th ere is no way a tire shop is going to install those tires and rims in that amount of time (the writer said he was in and out in less than 30 minutes) considering he has a 2004 BMW M3 with staggered tire fi t-ments –245s front and 275s rear.

Th e fi tment will take at least one hour to do properly and not ruin his rims.

And his price on the tires he purchased is $28 less than current direct cost from the manufacturer (he said he found

them on a website for $161.93). Th at suggests to me that the tires may have been old stock. Can the writer feel safe driv-ing his family in a high dollar car on those inexpensive tires?

You should expect to get at least 15,000 miles out of those tires. Are the rims tightened correctly? Is the alignment cor-rect? If not, the tires may wear out in 5,000 miles.

And the buyer was given bad information, as well. Th e car has size 225/45R18s on the front and 255/40R18s on the rear.

For the tires the writer ended up purchasing, Th e Tire Rack prices are $138 for fronts and $162 for the rears, plus shipping at $15 per tire.

And there are other brands at Tire Rack at less than these prices for the correct fi tment. You can type in the car infor-mation at www.tirerack.com and they’ll give you the correct fi tment for the car.

I talked with the tire dealership the writer said he went to, and they tell me it takes an hour or longer to do those tires at a cost of $25 each, and you need to make an appointment for that.

As I see it, the next generation can call a local tire dealer and get the correct tire information, and the professionals in their own backyard can make a suggestion on what tires they need for the type of driving they do. Th en they can do research to fi nd the professional’s choice for the proper fi tment for their needs — instead of just buying the cheapest thing they can fi nd online.

Th ey need to understand that driving a high-priced, high performance car has its expenses, and using the wrong tire can change the driving feel of the car, which is the reason they bought it in the fi rst place.

You can’t eat a good fi let for the price of a happy meal, but you can get the wrong tires and make your BMW feel like a “smart” car.

Mike Spitale, ManagerParrish-McIntyre Tire Co.

Akron, Ohio

Join Modern Tire Dealer’s National Advisory CouncilEach month, Modern Tire Dealer is guided and infl uenced by a select group of readers — members of our National Advisory Council. Th ese members’ opinions are the heart of the monthly Ludwig Report, compiled by well-known industry analyst Saul Ludwig. If you’d like to join this prestigious group, please let us know. We’d love to hear from you. Contact Editor Bob Ulrich at [email protected] or call (330) 899-2200, ext. 11.

“I believe the rapid increase in tire prices is driving customers to box stores and car dealers who are willing to sell at discounted prices in an attempt to fi ll their service bays.”

Ed Miller, Owner, Ed’s Tire Factory, Medford, Ore.

“Auto dealers are becoming the biggest discount-ers in our area.”

Robert McCormick Owner, Cappy’s Tire & Auto, Newton, Iowa

DEALERS’ OPINIONS

DEALERS’ OPINIONS

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http://www.tirerack.com


Quik-Link: 800-687-1557 ext. 14123



Quik-Link: 800-687-1557 ext. 14124



Modern Tire Dealer April 2012

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