Wholesale Distribution

Bridgestone Is Dropping ATD as a Distributor

Posted on June 27, 2018

American Tire Distributors Inc., the largest wholesale tire distributor in the U.S., was notified by Bridgestone Americas Inc. that it will no longer be a Bridgestone tire distributor.

"While we are very disappointed by Bridgestone’s decision, we will remain focused on our business and bringing our strategy and values to life," wrote ATD CEO and President Stuart Schuette to ATD associates.

Bridgestone is the second top-tier tire maker to pull its products from ATD's shelves.
Bridgestone is the second top-tier tire maker to pull its products from ATD's shelves.
The news follows last weekend's 2018 North America Business and Innovation Summit, at which Schuette shared the company's strategy; purpose, vision and values; new technology for associates and customers; and, "most importantly," change, with 1,200 associates.

In an open letter to its customers, ATD remained transparent.

"On Monday, June 25, Bridgestone notified ATD that we will no longer have access to distribute Bridgestone consumer products in the United States," wrote Schuette. "This decision limits ATD’s product line, but it also limits how customers can purchase and obtain products.

"Regardless, ATD remains well-positioned and will remain the leader in this industry. ATD will continue to offer more choice to customers -- many of whom are independent dealers -- than any other company. We offer products from nearly two-dozen tire manufacturers and more than 50 wheel and supply vendors. We operate the largest national network, and our world-class supply chain has been built, refined, and perfected over decades.

"But we aren’t satisfied by simply being the largest and most experienced distributor in the industry," he continued. "Our vision is one that is centered on technological innovations to support you -- our customers -- by driving traffic, saving you money, and simplifying your operations."

Schuette said ATD continues to generate "substantial cash flows," and as of May 31, 2018, had approximately $300 million of liquidity.

"Going forward, ATD is confident in the focus of our business and the strategy we have in process."

To read the official statements from both Bridgestone and ATD regarding the decision, check out these links:

"Bridgestone's Relationship With ATD Has Not Completely Ended."

"ATD Says Bridgestone Decision Limits Consumer Choice."

Related Topics: 2018 North American Business and Innovation Summit, ATD, light truck tires, passenger tires, retail, Stuart Schuette, wholesale, wholesale distribution

Comments ( 9 )
  • Richard Gozinya

     | about 2 years ago

    From what I understand the Tier 1 tire manufactures are loosing market share. I read that they have lost about 30% in the past 10 years The tier 2-4 manufactures are growing and online sales are growing. This is because consumers are more educated than ever and the quality of the value brands is about the same in some cases better than the tier 1. If I was ATD I would rather be on the side of the growing manufactures than declining. Always better to be on the upside of a trend than downside. I know in many circles we hear about market disruptions in the market and that is what ATD has done by embracing the Tier 2-4 . This play seems to be they way Bridgestone and Goodyear intend to reverse some of their lost market share. I think the market has changed and that Bridgesone and Goodyear have made a decision the will shrink their market share even more but is likely to increase their profits.

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