Retail

Live from the 2014 Goodyear Dealer Meeting!

Posted on January 30, 2014
This chart was shown to tire dealers at the 2014 Goodyear Dealer Meeting.

This chart was shown to tire dealers at the 2014 Goodyear Dealer Meeting.

At the 2014 Goodyear Dealer Meeting in Nashville, Tenn., Goodyear shared its views of what is to come with attendees.

Goodyear said GDP grew 1.9% in 2013. Here's what the company expects from the economy in 2014:

* the addition of 2.4 million jobs;

* an increase in per capita income (after stalling in 2013);

* a modest upswing in home values;

* a 3% growth in consumer spending (which will out-pace inflation);

* a stable energy market, with a slight decrease in gasoline prices.

Goodyear added that medical care costs are the "wild card."

Tire industry drivers in 2013

In terms of the tire industry, Goodyear said the 7.6% increase in new vehicles sold in 2013 bodes well for tire dealers (low interest rates and loosened credit helped auto sales). Vehicle sales growth is expected to continue this year.

Original equipment manufacturers are introducing models and making over aging vehicle fleets. So new cars are needed -- and there are already 252 million registered vehicles in the United States. Luxury vehicles, CUVs and hybrids are growing faster than any other vehicle category, although pickup truck sales remain strong.

In 2013, there was an increase in miles driven for the fourth time in five years. Goodyear said that will continue.

Industry size/shipment trends (see chart)

Goodyear said sizes are trending upward. There is a similar trend in speed ratings. Also, original equipment sizes are feeding the aftermarket.

The performance tire segment continues to perform the best, and the all-terrain segment is "finally" beginning to rebound.

The recovering U.S. economy, the end of the 25% tariff on consumer tire imports from China and struggling global markets in China, Brazil, etc. equaled the "perfect storm" for imported tires, which grew significantly in 2013.

Summary

Goodyear says economic indicators are positive, and so are tire industry drivers. As a result, consumers are shaking off the recession and are starting to spend again.

Related Topics: Dealer meeting, James Krein, Miles driven, OE tires, tire sizes, Vehicle production, winter tires

Comments ( 0 )
More Stories
Brett Ponton graduated from the University of Nebraska with a degree in finance.
News

Brett Ponton Will Take Over at Monro

John Van Heel is leaving Monro Muffler Brake Inc. after 15 years with the company, the last five as its CEO. He will be replaced by Brett Ponton, whose career includes time at Goodyear Tire & Rubber Co., where he rose through the ranks and eventually served as vice president of marketing for the North American tire division and managed more than 800 retail locations.  

News

Simple Tire Adds Another Delivery Option for Online Tire Buyers

Simple Tire LLC has added a third delivery option for customers of its online sales platform. They can ship their tires to any of the 1,800 FedEx Office locations in the U.S. But Simple Tire’s real goal is to redirect those customers to one of its installation partners.  

News

Pep Boys Expands in New York and New Jersey

Pep Boys — Manny, Moe & Jack, a wholly-owned subsidiary of Icahn Automotive Group LLC, has acquired an automotive and tire center in New York, and opened a new Pep Boys Service & Tire Center in Bordentown, N.J.  

The tall ceilings of Jeff Hall's Gardiners Road store give it a modern look and feel.
News

The Secret to Success for Midas in Canada: Tires

The owner of the two busiest Midas locations in Canada says offering an extensive tire inventory and more than a dozen tire brands has transformed his business. Consider Jeff Hall’s success a sign of what’s to come at Midas stores across North America.  

News

Six Hankook Tire Dealers Will Host Events for Veterans

Six tire dealers will help Hankook Tire America Corp. continue its partnership with the Disabled American Veterans (DAV) organization. Those dealers will host the group's Mobile Service Offices (MSO) at their stores so the DAV can reach out to veterans in those communities.  

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!