Nominations Being Taken for Modern Tire Dealer’s Tire Dealer of the Year Award. Modern Tire Dealer (MTD) magazine, the tire industry’s leading publication, is now accepting nominations for its 2008 Tire Dealer of the Year Award. The Tire Dealer of the Year Award is the most prestigious honor that an independent tire dealer can receive. Each year, one dealer is chosen from a pool of approximately 26,000 eligible independent tire dealers throughout North America. Dealers are evaluated in five key categories: business success, marketing skill, management skill, industry knowledge and community involvement. The MTD Tire Dealer of the Year Award was established in 1993, making it the longest running independent tire dealer award in the tire industry. Past MTD Tire Dealer of the Year Award winner have included tire industry giants Les Schwab, founder of Les Schwab Tire Centers, the second largest independent tire store chain in the United States, and Paul Zurcher, founder of Best-One Service, Inc., one of the North America’s largest tire distribution networks, as well as smaller dealers like Barry Steinberg, president of Direct Tire & Auto Service in Watertown, Mass., and Tony Troilo, former owner of Rosson & Troilo Motor Co. in Brandy Station, VA. The contest is open to independent tire dealers of any size. A list of all previous winners, plus articles written about them, can be found on MTD’s web site, www.moderntiredealer.com. “But there’s more to the Tire Dealer of the Year Award than honoring the best tire dealer in North America,” says MTD Editor Bob Ulrich. The Dealer of the Year program has enabled MTD - in conjunction with many tire manufacturers and other companies that support the program - to donate more than $120,000 to a wide variety of charities. Money has been used to assist handicapped children, build a cancer treatment center and support other worthy causes. To nominate a candidate for this year’s Tire Dealer of the Year Award, log onto www.moderntiredealer.com, or pick up a copy of Modern Tire Dealer and fill out the nomination form. The 2008 Tire Dealer of the Year will be announced in the September 2008 issue of Modern Tire Dealer, which also will include a feature length article about the recipient. Each year, when the Tire Dealer of the Year award winner is announced, Modern Tire Dealer directly donates $1000 to a charity or charities selected by the winner. Additional money from the award’s sponsors is also donated to the winner’s designated charity or charities. In print since 1919, Modern Tire Dealer is the longest running publication written exclusively for independent tire dealers. Over the years, Modern Tire Dealer has won numerous honors for editorial excellence, including 15 medals from the International Automotive Media Association. Modern Tire Dealer is owned by Bobit Business Media, a Torrance, CA - based media solutions company that specializes in business-to-business print publications, web sites and industry conferences.

RMA Eyes Shipment Growth, OE Rebound. The U.S. tire industry anticipates shipment growth in all three major product categories in 2008 based on increased vehicle registrations and a rebound in industrial activity, according to the Rubber Manufacturers Association (RMA). Replacement tire shipment growth in the light vehicle market will be in the order of 2.5 to 3 percent, the RMA said in its year-end 2007 summary, with passenger tire shipments expected to be up 2.5 percent, or about 5 million units, and light truck tire shipments up 2.9 percent, or 1 million units, over 2007. At the same time, the RMA revised its earlier projections of a decline in 2007 shipments, saying now the
replacement passenger and light truck tire markets should end the year up 3.3 percent and 1.8 percent, respectively, over 2006. Replacement shipments of commercial truck tires, on the other hand, should fall 2.7 percent, or 500,000 units, from 2006, reflecting a weaker economic environment in the fourth quarter. Increased industrial activity should provide momentum for a rebound in 2008 back to the 2006 plateau, the RMA said.

Ohio Group Changes Name. The Ohio Tire Dealers & Retreaders Association (OTDRA) has reincorporated as the Ohio Tire & Automotive Association (OTAA). Members of the trade group recently voted unanimously to approve the name change. “Our members are already performing automotive-type services on cars, trucks and commercial vehicles,” said OTAA President Larry Kane. “Our new name accurately portrays the type of service our members actually perform and further aligns our focus on both the tire and automotive industries.” Executive Director Gordon Gough
said the association will continue to offer the same member service and focus on growth. The OTDRA was founded in 1967.

Tire Makers Hiking Prices. As raw materials, transportation and energy costs continue to skyrocket,four tire makers said they will again increase tire prices. Continental Tire North America Inc. will hike prices up to 7 percent on all Continental, General and proprietary brand passenger and light truck tires in the U.S., effective April 1. Goodyear said it plans to increase prices by up to 7 percent on all its consumer tires in North America, effective with orders placed on or after Feb 1. Michelin North America Inc. will raise prices on its passenger and light truck tires as well as its earthmover and industrial tires. The company said Michelin, BF Goodrich, Uniroyal, private and associate brand tire prices will increase up to 7 percent for replacement tires sold in the U.S., effective March 3. Prices of earthmover and industrial tires sold in
the U.S. and Mexico, including those on back order, will rise an average of 3 percent, effective Feb 1, Michelin said. Titan Tire Corp. will raise prices on Titan, Goodyear, and General-brand farm, construction and off-the-road tires up to 7 percent, effective March 1. The increase may rise in excess of 7 percent on certain tires because of “realignment and positioning of the product,” the company said. Titan makes certain Goodyear and General branded products under licensing agreements.

Tire Production Ends At Tyler. Goodyear’s Tyler, Texas, plant officially ceased tire production Dec. 21 with a loss of about 600 to 650 jobs through layoffs, retirements and transfers to other facilities, the company said. The plant will continue as a rubber mixing center operated by 135 employees. Goodyear opted to cease tire production at the Tyler plant, which had a daily capacity of 25,000 passenger and light truck tires, following its 2006 decision to exit certain segments of the private brand tire business. Some of the capacity was absorbed by other Goodyear facilities, according to the company. Goodyear expects the tire production shutdown to save it about $50 million a year after taxes.

Business Happy About Stimulus. Spokesmen for U.S. business generally were pleased with the enactment of a $168 billion economic stimulus bill designed to alleviate an expected downturn in the U.S. economy. PresidentBush signed the bill Feb. 13, six days after both chambers of Congress passed it by a wide margin. After Senate Democrats failed to get the three-fifths majority for their own version of the stimulus package, the version approved the week before by the House of Representatives reached the floor with additional provisions to give tax breaks to senior citizens and disabled veterans. The Senate approved that legislation 81 - 16. Because of the added amendments, the bill had to go back to the House, but it passed there by a 380 -34 vote a few hours later. The stimulus bill-effective immediately - allows businesses to expense up to 50 percent of capitol goods put into service in 2008. It also nearly doubles the maximum amount that businesses could write off under Section 179 of the Tax Code, to $250,000 from $128,000, and raises the phase-out threshold to $800,000 from $510,000. “If you have a number of stores, and you’ve been waiting to make a big purchase, this is the time to do it,” said Paul Fiore, director of government and business affairs for the Tire Industry Association. The National Federation of Independent Business (NFIB), one of the more general business organizations lobbying for the stimulus package, said it looked forward to having the business tax breaks available quickly to its members. “The sooner small business owners can count on these tax incentives, the sooner small business owners can take advantage of the stimulus package and start investing in their businesses,” said NFIB Executive Vice President Dan Danner.

Dealers Must Provide Protection Says OSHA. OSHA has ruled that employers must pay the cost of providing any personal protective equipment necessary to protect workers from job related injuries. The new rule covers such items as respirators, hard hats, gloves, goggles, safety shoes, safety glasses and welding helmets. There are, according to SEMA, several exceptions. Employers are not required to provide protection equipment if none was previously required, and don’t have to pay for equipment that is lost or intentionally damaged. In addition, the rule does not cover everyday clothing or weather related clothes that can be worn off-the-job, such as winter coats, gloves, hats, etc., ordinary steel-toe shoes/boots, ordinary prescription safety eyewear or skin creams. Employers must implement the requirements no later than May 15.

Malerba Becomes Industry Consultant. Former Tire Industry Association president and independent tire dealership owner Bob Malerba has started his own tire industry consultant firm, Malerba’s Consulting LLC. The company specializes in trouble shooting, team-building, business overview analysis and other functions. “I think there’s a lot of need (for advice) in the small business world,” says Malerba.

Dealership Raises Funds For Worker’s Sick Child. Customers and employees of TTDA member Pueblo Tires& Services have raised several thousand dollars to help with medical costs for an employee’s daughter stricken with cancer. The McAllen-based dealership learned that the 12-year-old daughter of Thomas Godinez, a sales and service technician at its Harlingen, Texas store, was diagnosed with a form of lymphoma. Mr. Godinez has worked at the dealership for seven years. Several months ago the company set up collection jars at each of its eightretail locations, as well as at its wholesale office. Customers and employees donated $4,197 for the Godinez family.Pueblo Tires said it is still accepting donations through a fund set up for the Godinez family at Capital One Bank in McAllen.

ATD Acquires Homann Tire Wholesale. American Tire Distributors Holdings (ATD) Inc. bought Homann Tire Wholesale of San Antonio, Texas, in early December, expanding ATD’s network by five distribution centers - four in Texas and one in Louisiana. The deal, for an undisclosed sum, expands ATD’s customer base by more than 1,600 locations in the two states ATD said, including the firm’s first distribution base in Louisiana. The deal covers distribution centers in San Antonio, Killeen, Corpus Christi and Houston, Texas and Lafayette, La., but does not include two retail stores Homann operates in the San Antonio area. “The Homann tire operation, including its strong team of people, will be an excellent complement to the current ATD distribution center network in Texas,” said ATD Chairman and CEO Richard Johnson. ATD declined to comment on Homann Tire’s size but said the company’s status as a Michelin Alliance distributor will help strengthen ATD’s business in Texas with the Michelin brands. ATD first moved into Texas three years ago with its purchase of Big State Tire Supply. Homann Tire was founded by Ray Homann in 1974 as a single retail store in San Antonio. Ray’s son, Ken Homann, took ownership of the business in 1991 and expanded it into wholesale in 1997. Ken Homann, 43, said he’s looking forward to getting back to the grassroots of retailing with his Homann Tire & Automotive and Motorsports Authority Xchange stores in San Antonio. He’s also the landlord for two former Homann Tire retail stores in Kerrville and Pleasanton, operating since early 2006 as Murphy Tire & Automotive under the direction of Brett Murphy, a longtime Homann tire employee. Mr. Homann said he’ll probably “stand pat and evaluate my situation” for up to six months before deciding if he wants to expand his retail business. Homann tire’s move into wholesale was “purely accidental,” Mr. Homman said. “We were doing lots of national account business and I needed some way to take advantage of the credits, so we started wholesaling on a small scale and it kept growing.” The decision to sell was made in the “best interest of my employees and customers,” Mr. Homann said. “Selling to ATD provides lots of good career paths for my employees and lots of new opportunities for my customers.” Mr. Homann said he’s been approached several times over the past five years with offers to sell. With the sale of the wholesale business, Mr. Homann is faced
with another challenge: funding the company’s longtime Christian missionary support program. For as long as he’sbeen associated with the family business, Homann Tire has sponsored missionaries, both locally and overseas, supported local orphanages and provided pay-as-you’reable pricing for ministers and ministers widows. To keep this effort going, the Homann family is setting up the Homann Tire Family Foundation. The parties did not disclose Homann’s annual sales volume. This is ATD’s third acquisition in 2007. It bought the wholesale businesses of Miami’s Martino Tire Co. in July and Denver’s Jim Paris Tire City in June.