ATD´s Johnson: Logistics, ACCC tie have yet to be decided

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The process of merging Target Tire Inc.´s wholesale distribution company into its own organization has begun for American Tire Distributors (ATD).

There are plenty of questions which will be answered in the near future, according to ATD Chairman and CEO Dick Johnson. They include:

1. Will all of Target Tire´s 11 warehouses, some of which overlap with ATD´s warehousing, be retained?

2. What will happen to Target´s senior management?

3. Will ATD promote Target´s American Car Care Centers (ACCC) program?

Huntersville, N.C.-based ATD completed its purchase of Jacksonville, N.C.-based Target Tire last Wednesday evening. Johnson expects it will take the rest of the year to integrate Target´s regional operations into ATD´s nationwide network of 69 warehouses.

Johnson says because there is overlap on the East Coast, he will visit each of Target´s warehouses as soon as he can to decide if any need to be merged into ATD´s existing warehouses or closed.

"We´re going to take our time, running them as is for right now."

He tentatively hopes to create an "Atlanta North" and "Atlanta South" by moving inventory from Target´s southern Atlanta warehouse to a nearby larger facility owned by former Target Tire chairman Bucky Stein. (ATD already runs a warehouse in northern Atlanta.)

Johnson likens the Atlanta setup to ATD´s operations in Los Angeles, which, based on traffic problems, is divided into three territories.

Johnson says he plans to meet with some of the senior managers from Target Tire on Wednesday afternoon and Thursday morning. "We´re going to add management strength. They´ve got some really good people working for them."

Johnson adds a possible relationship between ATD and ACCC has "yet to be decided."

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