Dealer Tire's Investment in SimpleTire Is Not That Simple

Bob Ulrich
Posted on May 17, 2018

Dealer Tire LLC continues to evolve as one of the largest tire wholesalers in the U.S. Its recent investment in Simple Tire LLC, dba SimpleTire.com, is one sign of that.

As Dealer Tire CEO Scott Mueller said when the partnership was announced, “We’ve built our business by consistently driving innovation in the tire distribution business and by providing automotive dealers with the tools and services they need to be successful selling tires. While our core business remains focused on supporting the dealer channel and our OEM customers, our investment in SimpleTire is part of our effort to continue bringing innovation and technology to the tire industry.”

The phrase “core business” is interesting, because it implies Dealer Tire also is involved in other businesses to some extent. Will that soon include shipping tires for SimpleTire, the online tire retailer known for its innovative e-commerce platform? SimpleTire already has a network of more than 10,000 independent tire dealers and over 3,000 independent supply points.

On Dealer Tire’s website, the company is all about helping auto manufacturers and franchised automobile dealerships “grow their tire and light maintenance business. Period.” That’s a pretty emphatic way of saying it will not be shipping tires to non-car dealerships.

However, Mueller also said the following:

“We’ve developed strong core expertise in logistics, technology, merchandising, marketing and more. We will leverage our expertise and SimpleTire’s capabilities to create new opportunities for both companies.”

When asked, "Will Dealer Tire ship or is it looking into shipping tires from its warehouses to SimpleTire’s network of independent tire dealers?" Dealer Tire had this to say:
"We’re very early on in the process and are continuing to develop our approach collaboratively with our partners."

As for its relationship with Goodyear Tire & Rubber Co. and Bridgestone Americas Inc. following the creation of TireHub LLC, here is a quote from Jill Marcotte, partner and chief supply chain officer for Dealer Tire: “We enjoy an exceptional working relationship with Bridgestone and Goodyear. They have assured us that they value our partnership and that they will continue to fully support our business model. It’s an exciting time to be in the tire business, and we’re looking forward to continuing to adapt and evolve in an ever-changing landscape.”

Dealer Tire buys Goodyear, Dunlop and Kelly from Goodyear, and Bridgestone and Firestone from Bridgestone. It also offers Michelin, BFGoodrich, Uniroyal, Continental, General, Hankook, Kumho, Nexen, Pirelli, Toyo and Yokohama tires to car dealerships. Only Kelly and Uniroyal are non-OE brands.

The company says it serves the following vehicle brands: Audi, Hyundai, Infiniti, Jaguar, Kia, Land Rover, Lexus, Mazda, Mercedes-Benz, Nissan, Rolls-Royce Motor Cars, Toyota, Volkswagen and Volvo. Notably absent is Chrysler/Fiat (FCA), which was listed as a preferred vendor last year.

Dealer Tire evolved from the Mueller family’s retail business, which began in 1918. A company doesn’t survive 100 years without being able to change with the times, and that could include a change in its customer base down the road.

Related Topics: BTS Tire & Wheel Distributors, car dealerships, Dealer Tire, Jill Marcotte, Scott Mueller, Simple Tire LLC, TireHub, wholesale distributors

Bob Ulrich Editor
Comments ( 1 )
  • Inside scoop

     | about 3 months ago

    Dealer Tire had to diversify , they lost the Chrysler - jeep -dodge program. Soon more auto manufacturers will part ways with Dealer Tire and their program

More Stories
The Giti GDL633 FS features seven circumferential grooves to move water.
News

Giti Expands Ultra-Wide-Base Tire Lineup

Giti Tire (USA) Ltd. is amping up its lineup of ultra-wide-base tires with two new offerings, the GDL633 FS for the drive axle position and the GTL933 FS for trailers in long haul applications.

The ADS 625 (pictured) and ADS 325 scan tools are part of Bosch's new Automotive Diagnostic Solutions line.
Product

Bosch Introduces Two Diagnostic Scan Tools

The new ADS 325 and ADS 625 scan tools from Bosch Automotive Service Solutions feature full diagnostic capabilities including system scans, data stream, special tests, bi-directional controls, and repair information.

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.

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!