Retail

Adapt and Conquer: Obamacare, Tire Labeling and Tire Registration

Bob Ulrich
Posted on January 26, 2016

There are three major issues you will have to deal with as tire dealers in 2016 and beyond. The first is Obamacare. The second is tire labeling. And the third is tire registration.

The good news? There are still plenty of details to be worked out in all three, which means there is hope that any unreasonable or unmanageable aspects of the laws will be fixed or disregarded. The time lag also will give you plenty of time to adapt. The bad news? Politics can get in the way of logic. Each law has its merits, but when it comes to small business, the government doesn’t always believe in compromise.

Nick Mitchell, senior vice president of research for Northcoast Research Holdings LLC, echoed that thought when asked to describe what President Barack Obama’s legacy would be.

“President Obama protects tire manufacturers and unions with tariffs, (and) burdens consumers and small businesses (i.e., tire dealers) with the cost.”

Obamacare, also known as the Affordable Care Act, is already up and running. Once a law is entrenched in society, it is hard to repeal. So don’t count on it being overturned.

Over time, Congress hopefully will improve Obamacare and eliminate the loopholes unfairly detrimental to you. According to one dealer, the coverage for underachieving employees is more expensive than it is for hard-working employees.

Before tire labeling can go into effect, a national tire fuel efficiency consumer information program for replacement tires has to be established. Although the National Highway Traffic Safety Administration published a “final” rule in 2010 specifying the test procedures needed to rate tire performance, there have been delays in its implementation. The comment period on how this information will be made available to consumers ends on March 30th of this year.

Mandatory tire registration at the point-of-sale became law when the president signed a five-year highway bill in December. However, a study to examine the feasibility of requiring tire manufacturers to include electronic identification information on every tire, and ensuring all manufacturers use a streamlined format for that information, needs to be completed first. In other words, there is no timetable for enforcement of the law.

As with many regulations in transition, the wait for the ball to drop can be frustrating. Just remember, history emphatically tells us you can adapt to anything. ■

If you have any question or comments, please email me at bob.ulrich@bobit.com.

Want to read more of Bob Ulrich's editorials? See:

Pricing on Chinese tires: Tariffs are not having the same effect this time around

Getting the words out: Coming to terms with possible tire industry lingo

Safeguarding customer data is the real issue when it comes to tire registration

Related Topics: Bob Ulrich, Bob Ulrich editorial, Editorial, Obamacare, Tire labeling, tire registration

Bob Ulrich Editor
Comments ( 0 )
More Stories
News

Monro Will Accept Wex Fleet Cards

The 1,100-plus Monro Inc. locations in the U.S. will accept Wex Inc. fleet cards for payment. Those cards are used by 11.5 million vehicles.

News

Max Finkelstein Adds Falken and Ohtsu Brands

Max Finkelstein Inc. (MFI) is partnering with Falken Tire Corp. to distribute Falken and Ohtsu brand passenger and light truck tires throughout the Mid-Atlantic and Northeast U.S. 

Consumers will receive “Save the Tiger” kits when they buy Uniroyal tires in October.
News

Uniroyal Wants to Save Tigers in the Wild

Three years ago, Uniroyal dealers told Michelin North America Inc. the Uniroyal brand needed to be strengthened and refreshed. Based on the feedback, Michelin started a series of initiatives that have come to fruition this year.

News

Hankook Relies on OE Tires for 2Q Sales Growth

Hankook Tire Corp. Ltd. posted net sales of 1.7 trillion won for the second quarter ended June 30, 2018. That compares to sales of 1.66 trillion won for the same period in fiscal 2017.

News

Versatile Credit Adds EasyPay Finance Option

Versatile Credit Inc. has added the EasyPay Finance option to its list of platform offerings. The "second look" option focuses on offering financing solutions to the automotive market.

Article

Unit Sales Volumes Were Up Nearly 2%

Our recent discussions with dealers leave us with a view that sell-out trends improved in May versus the prior year’s period, re-accelerating from year-over-year contractions early in the year. While always somewhat subjective, we note commentary from installers was at the highest level since October 2017. From a volume standpoint, surveyed dealers reported they saw unit sales volumes up nearly 2% relative to the previous year’s period.

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!