TBC, Treadways to continue separate sales and marketing programs

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When Sumitomo Corp. of America bought TBC Corp. in 2005, speculation was rampant about how long it would take before Treadways Corp. and TBC’s Wholesale Division would be merged and which tire lines would be eliminated. So what happened? In short, no consolidation.

At the first-ever combined TBC Private Brand and Treadways annual meeting, Gary Paulson, president of TBC Private Brands, told dealers that the two companies would continue to operate as "autonomous units…just as they have in the past."

"The management teams at both companies will communicate constantly with each other and continually look for new and mutually beneficial sales opportunities," Paulson told about 200 dealers at the January 10 meeting in Palm Desert, Calif.

Sharing the podium at the same time, Lyle Symonds, president of Treadways, further emphasized this point by stating "we think there is tremendous value in keeping our sales and marketing functions separate, allowing TBC Private Brands and Treadways to continue to operate as they have in the past."

"There is absolutely no reason in the world to dismantle the sales and marketing functions of two successful companies, which are both strong contributors," Paulson added.

Combined, the two TBC companies have eight private label brands, along with carrying the Sumitomo brand and shared generic powerlines.

Modern Tire Dealer, in its upcoming January Facts Issue, estimates that TBC and Treadways private brands combined will account for 9% of the domestic consumer tire market. (Total market size should total 240.7 million units.)

The two companies plan to continue making once-proprietary lines available to each other for their distributors. The companies will also bring in "shared" offerings until volume warrants moving to individual SKUs for each brand.

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