Would you consider Toyota Motor Sales U.S.A. Inc. a domestic or foreign car company? The parent company is based in Japan. But Toyota has been manufacturing vehicles in the U.S. since 1972.
"Next they'll be selling tires. They sell almost everything else."
For all of you commercial truck tire dealers and manufacturers, remember the first quarter of 2017? No? I’m guessing that is the result of selective memory. It was pretty slow, and that is an understatement.
Tire manufacturers continue to see high-value-added (HVA) tires as the way to increased profitability. Need proof? According to the Tire & Rim Association, there are 65 18-inch sizes, more than any other rim diameter.
Selling tires online is a growing trend, with more online-only players making names for themselves each year. The relative newcomers compete against not only brick-and-mortar retailers, but also each other, and cannibalize sales from leading online tire companies like the Tire Rack Inc. and Discount Tire Direct.
What spurred Michelin North America Inc. to buy 50% of TBC Corp. from Sumitomo Corporation of Americas (SCOA)? Michelin Chairman and President Scott Clark says the resulting joint venture “is about increasing our service capabilities and increasing our scale so that we can be a better supplier to both independent dealers and to provide secondary supply to our direct customers.”
Modern Tire Dealer and tire industry analyst Nick Mitchell have independently reached the same conclusion: Tier 2 and Tier 3 brands outperformed Tier 1 brands through the first 10 months of the year based on unit growth.
Replacement truck tire shipments set a record high in 2017, and that's particularly impressive alongside a 20.5% drop in truck tire imports from China.
Would you consider your business model average? Probably not. But you can learn a lot about your business when you benchmark your profile against the average dealer.
Warehouse clubs sell a lot of tires. In 2017 they sold 18.3 million passenger tires, which accounted for 9% of the retail tire sales in the U.S.
Is Pirelli OE-obsessed? You be the judge. Last August, Pirelli & Cie SpA introduced 110 original equipment fittings, a company record for one month.