Kal Tire teams up with Ontario dealerships

April 29, 2002

Three dealerships in Ontario, Canada, are receiving capital injections from Vernon, British Columbia-based Kal Tire as part of the 100-plus-outlet chain's drive into eastern Canada.

The dealerships -- J&M Tire of Oshawa, Ontario; Timmins (Ontario) Tire; and The Tire People, which has nine shops in northern Ontario, plus one in Quebec -- also will benefit from Kal Tire systems support efforts.

"Usually, Kal Tire has built new stores or purchased existing tire dealerships to fuel its expansion," say Kal Tire officials.

"We've done very well with the old model, but when (the opportunities) came up, we had to consider new ways of making it win/win."

The dealerships will remain autonomous in ownership and operation, according to Kal Tire.

"We've now got more options to offer to dealers whether they want to sell their businesses outright or want to stay involved."

Kal Tire is the sixth largest independent tire store chain in North America, according to Modern Tire Dealer statistics.

It is the 18th largest tire distribution group in North America with nearly 50 associate dealers.

Kal Tire has not disclosed further plans to extend capital and services to other independent tire dealerships.