ATD Will Continue to Sell Michelin and Bridgestone Tires

Bob Ulrich
Posted on June 26, 2018
"We have an unrelenting commitment to our customers and partners to provide the technology and insights they need to drive and thrive into the future," said ATD CEO Stuart Schuette at the company's first North American Business and Innovation Summit.
"We have an unrelenting commitment to our customers and partners to provide the technology and insights they need to drive and thrive into the future," said ATD CEO Stuart Schuette at the company's first North American Business and Innovation Summit.

The formal transition of Goodyear Tire & Rubber Co.'s G3X program away from American Tire Distributors Inc. (ATD) will be on June 30, 2018. After that, ATD says it "will continue to provide Goodyear product for all other customers until a determined transition time."

That time has yet to be determined, but it will end the relationship between Goodyear and ATD. I wouldn't think it would be a long transition; Goodyear wants dealers to buy as much as possible from TireHub LLC, its new joint venture with Bridgestone Americas Inc., as soon as possible.

As to the aftereffects of the split, only time will tell. ATD CEO and President Stuart Schuette is on record as saying the company is financially strong and off to a great start in 2018 with a 3% increase in net sales in the first quarter and a 3.6% increase in net sales in April. At the time, he was also optimistic about sales in May.

But what about the other brands involved in the formation of joint venture wholesale distribution companies this year? ATD also sells Bridgestone, Firestone and Fuzion, as will TireHub.

And ATD offers Michelin, BFGoodrich and Uniroyal, as does National Tire Wholesale, the joint venture formed when Michelin North America Inc. bought 50% of TBC Corp. from Sumitomo Corporation of Americas earlier this year.

Modern Tire Dealer asked Schuette about ATD's relationship with both Michelin and Bridgestone. In a nutshell, he says they are both fine. Whereas Goodyear, Dunlop and Kelly have been removed from the list of product offerings on the company's redesigned website, Michelin and Bridgestone brands remain front and center.

(Editor's note: Since this interview, Bridgestone announced it was dropping ATD as a distributor of its consumer tire products in the U.S. For more information, check out: "Bridgestone Is Dropping ATD as a Distributor.")

Michelin: Following Groupe Michelin's first-quarter earnings announcement, Executive Vice President and Chief Financial Officer Marc Henry was asked about Michelin's relationship with ATD. Schuette referenced his comments.

"He goes on in great detail about the amicable relationship Michelin has with ATD," said Schuette, "how (Michelin) needs ATD to reach the broader marketplace and so forth."

Schuette said that message has been consistently voiced all the way up to General Managing Partner Florent Menegaux.

Bridgestone: Schuette said TJ Higgins, president of Bridgestone’s integrated consumer tire group in the U.S. and Canada, also has been consistent in his support for ATD.

"If you look at TJ Higgins' inteviews... he’ll say 'Listen, we intend to go to market with the TireHub and a committed group of wholesale distributors as well.'

"We work very, very hard on delivering on behalf of our manufacturing partners," said Schuette, "and we will continue to do that with all of the partners we have. We will drive value for them, and we think that is recognized."

ATD recently held its first North American Business and Innovation Summit. The company invited 1,200 of its top leaders to Dallas to discuss ATD's strategy moving forward.

"Nearly two years ago, we began a journey of transformation to become the most connected and insightful automotive solutions provider in the industry," he told attendees. To find out what ATD accomplished in its attempt to meet that goal, check out this link:

"ATD Shares Its Vision With Its Associates -- and MTD."

Related Topics: 2018 North American Business and Innovation Summit, ATD, Florent Menegaux, joint venture, Marc Henry, NTW, Stuart Schuette, TireHub, wholesale distribution

Bob Ulrich Editor
Comments ( 3 )
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  • JEROME

     | about 2 months ago

    Atd is not good business people. They have poor customer service.

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