Return to 'normal?

'
Why our industry will move forward in 2021

How to maximize the

value of your business
Dealer completes 'the corona shift'
Is your culture customer-centric?

Shipments, market share,

pricing and more — MTD’s Facts Issue
drills down into the numbers
January 2021 | Vol. 102, No. 1 | $30 | www.moderntiredealer.com

00_MTD_Cover.indd 1 1/12/21 10:17 AM

 2021 MTD Facts Issue

What a year! TIRE INDUSTRY SURVIVED A TOUGH 2020. NOW WHAT?

M
uch has been written about the devastating impact that
the COVID-19 pandemic had on the world economy
World Leaders in New Tire Sales
(Fiscal year 2020; in billions of U.S. dollars)
during the first half of 2020.
Less has been written about what has happened Tire Company 2020 2019
since then, including a faster-than-anticipated economic
recovery that kicked in during the summer months. Bridgestone Corp. $22.6 $27.0
According to the International Monetary Fund’s (IMF) most Michelin Group $22.0 $25.6
recent World Economic Outlook, commerce “normalized” at an
above-expected rate this past summer, reaching an apex during Continental AG $11.5 $12.9
the third quarter, with a bruised-but-unbowed global economy
Goodyear Tire & Rubber Co. $10.2 $12.5
“climbing out from the depths to which it had plummeted during
the ‘Great Lockdown’ in April.” Sumitomo Rubber Industries Ltd. $6.2 $7.0
The same trajectory played out in the U.S. and — as a microcosm
within it — the domestic tire industry. Pirelli & Cie SpA $4.8 $5.9
Both tire manufacturers and tire dealers enjoyed a rebound in Hankook Tire Co. $4.7 $5.9
business during June, July, August and beyond, thanks to the release
of pent-up demand driven by economic stimulus, the relaxation of Yokohama Rubber Co. $4.1 $5.0
strict stay-at-home orders, an uptick in vehicle miles driven and Zhongce Rubber Group Co. Ltd. $4.1 $4.0
other, interdependent factors.
Tire manufacturers, in particular, benefitted from this “restart” Cheng Shin Rubber Ind. Co. Ltd.* $2.8 $3.5
as units began to flow into the original equipment channel again,
Toyo Tire & Rubber Co. Ltd. $2.8 $3.0
when vehicle manufacturers ramped up production following a
significant draw-down. (More than 90% of vehicle manufacturers Giti Tire Pte. Ltd. $2.6 $3.4
in the U.S. had suspended production by the end of the first quarter,
Cooper Tire & Rubber Co. $2.5 $2.7
according to reports. New vehicle sales bottomed out in April.)
Various tire manufacturers’ third quarter financials reflected a Kumho Tire Co. Inc. $2.0 $2.1
resumption of positive momentum, as they continued to jockey *CHENG SHIN DOES BUSINESS AS MAXXIS INTERNATIONAL
for position on the global stage.
Overall U.S. Replacement Tire Sales
DEALERS ADAPTED TO CHANGE (Total value of 2020 U.S. replacement tire market: $39.9 billion)
As the tire and auto service industries remained “essential,” tire
dealers, in particular, displayed a tremendous amount of resilience. SEGMENT 2020 2019
Agile, quick-thinking dealers used the pandemic as an oppor-
Passenger $25.6 $28.2
tunity to introduce new services, including text-to-pay, online
scheduling and vehicle pick-up and delivery, among others — Light truck $5.4 $5.7
many of which were so well-received by customers that they have
become permanent offerings. Commercial truck $6.7 $6.9
As more consumers turned to e-commerce, many tire dealers OTR $1.7 $1.8
also shored up their online presence, making it easier for in-market
buyers to connect with them. Ag $.595 $.592

ALL FIGURES IN THIS SECTION ARE THE RESULT OF MTD RESEARCH, UNLESS OTHERWISE NOTED.

32 MTD January 2021

03_MTD_Facts.indd 32 1/13/21 10:39 AM

 DID MARGINS HOLD?
Independent tire dealers fought hard to maintain their margins
U.S. Light Truck Tire Shipments
(in millions of units)
at a flat, year-over-year level during 2020.
Average margins in the passenger retail, passenger wholesale, Year Replacement OE
light truck retail and medium truck retread segments declined
slightly from 2020 numbers — with retread margins shrinking 2020 30.4 5.0
the most. Meanwhile, commercial tire dealers were able to collect 2019 32.0 5.9
a little more for their wares.
2018 31.1 5.6

U.S. Tire SaleS Average Margins 2017 30.8 5.4

2016 31.4 4.9
Segment 2020 2019
2015 29.0 4.6
Passenger (retail) 28.8% 30.0%
2014 28.8 4.8
Passenger (wholesale) 12.6% 13.5%
2013 28.3 4.4
Light truck (retail) 24.4% 25.3%
2012 28.3 4.2
Medium truck (retail) 15.6% 15.4%
2011 28.6 4.1
Retread (medium truck) 17.5% 20.0%
2010 28.0 3.5

U.S. Medium Truck Tire Shipments

(in millions of units)
SHIPMENTS: NOT AS BAD AS EXPECTED
Given all that happened during 2020, it’s no surprise that U.S. Year Replacement OE
replacement passenger tire unit shipments were down for the
2020 18.5 4.5
year, dropping by around 9.%
However, replacement light truck and medium/heavy truck tire 2019 18.9 6.5
unit shipment declines were not as pronounced, beating projections
that were made during the first half of the year. (Replacement 2018 21.0 6.2
light truck tire shipments fell around 5%. Medium/heavy truck 2017 19.2 5.7
tire shipments dropped around 2%.)
2016 18.4 5.3

U.S. Passenger Tire Shipments 2015 18.0 6.3

(in millions of units) 2014 17.3 5.8

Year Replacement OE 2013 15.7 5.0

2020 202.6 36.2 2012 16.0 5.3

2019 222.7 45.1 2011 17.0 4.9

2018 217.0 47.0 2010 15.3 3.0

2017 209.3 46.0 LOOKING AHEAD

2016 207.7 49.0 There are a number of factors that could have a material impact
on the domestic tire market in the new year. These include the
2015 205.9 49.0 distribution and effectiveness of newly introduced COVID-19
vaccines, which could boost consumer confidence; the recently
2014 206.6 46.3
passed Consolidated Appropriations Act, which includes an exten-
2013 201.6 44.0 sion of the Paycheck Protection Program; the potential for tariffs
applied to consumer tires made in South Korea, Taiwan, Thailand
2012 192.0 40.5 and Vietnam; and actions by the incoming Biden administration.
2011 196.5 36.0 Another development to watch is the continued bottleneck in
transpacific container shipping, which is causing supply chain
2010 198.7 34.6 slowdowns and freight rate increases.

w w w . M o d e r n T i r e D e a l e r. c o m 33

03_MTD_Facts.indd 33 1/13/21 10:41 AM

 Imports

Thailand once again

tops list OF EXPORTERS TO U.S.
BUT TARIFFS COULD IMPACT 2021 SHIPMENTS

L
ooking at passenger and overall consumer tire imports in
2020, Thailand once again shipped the most units to the
2020 U.S. Consumer Tire Imports
United States, continuing a multi-year streak. (in millions of units)
But will this trend continue long-term? Much of that will
depend on the result of the U.S. Department of Commerce’s
Country 2020 2019 % CHANGE
(DOC) ongoing investigation of tire manufacturers and exporters Thailand 42.7 45.0 -5.1%
from South Korea, Taiwan, Thailand and Vietnam.
South Korea 15.5 19.2 -19.2%
Right before press time, the DOC said it had “preliminarily
determined that exporters” from those countries “have dumped” Mexico 15.2 15.9 -4.4%
consumer tires into the U.S.
Of the four countries mentioned above that are presently on Indonesia 13.2 14.5 -8.9%
the docket, only two showed gains during the past year. Vietnam 13.1 12.1 +8.2%
Vietnam increased its passenger tire exports to the U.S. by 6%
and also boosted its overall U.S. consumer tire exports by 8.2%. Canada 12.2 15.9 -23.2%
Meanwhile, Taiwan’s passenger tire exports to the U.S. increased Taiwan 9.6 9.1 +5.4%
1.1% and its overall consumer tire exports to the U.S. grew by 5.4%.
Thailand’s passenger tire exports to the U.S. dropped by 6.4%. Japan 8.2 10.7 -23.3%
Its overall consumer tire exports fell 5.1%.
Chile 4.1 6.0 -31.6%
South Korea’s passenger and overall consumer tire exports to
the U.S. declined by 20.9% and 19.2%, respectively. China 2.8 3.3 -15.1%
Which exporting country gained the most ground during 2020?
Malaysia, which significantly boosted its number of passenger
tire shipments to the U.S. at 2.5 million units. GONE COMMERCIAL
By comparison, China exported around 2.2 million passenger On the commercial truck tire side, tariffs continued to impact
tire units to the U.S. in 2020, according to MTD research. exports from China, which declined by more than 60% for the
Consumer tire shipments to the U.S. from China peaked at second year in a row. Both Vietnam (up 28.5%) and South Korea
60.5 million units during 2014. (up 16.6%) posted gains versus 2019 levels.

2020 U.S. Passenger Tire Imports 2020 U.S. MEDIUM Truck Tire Imports
(in millions of units) (in millions of units)

Country 2020 2019 % Change Country 2020 2019 % Change

Thailand 34.9 37.3 -6.4% Thailand 3.7 4.5 -17.7%
South Korea 13.6 17.2 -20.9% China 1.1 2.9 -62.0%
Mexico 13.3 14.1 -5.6% Canada 1.0 1.6 -37.5%
Indonesia 11.4 12.5 -8.8% Japan 1.0 1.4 -28.5%
Vietnam 10.5 9.9 +6.0% Vietnam 0.9 0.7 +28.5%
Canada 8.6 12.4 -30.6% South Korea 0.7 0.6 +16.6%
Taiwan 8.6 8.5 +1.1% Brazil 0.2 0.3 -33.3%
Japan 6.5 8.4 -22.6% Germany 0.2 0.3 -33.3%
Chile 3.4 5.5 -38.1% India 0.2 0.2 +0.0%
Malaysia 2.5 1.6 +56.2% Spain 0.2 0.5 -60.0%

34 MTD January 2021

03_MTD_Facts.indd 34 1/12/21 10:39 AM

 Passenger/light truck tire market share
Flight
to value
COVID-19 GAVE A BOOST
TO CERTAIN BRANDS
I
f one trend dominated consumer re-
placement tire sales during 2020, it was
the gravitation of cash-strapped buy-
ers to brands that occupy lower price
points. The impact of COVID-19 and
lingering economic malaise helped open
the door.
MTD’s passenger and light truck tire
brand market share charts reflect some of
the results of this movement. (All brands
listed on the charts must have at least 1%
share of market.)
Will the domestic tire industry see a swing
toward tier-one brands in the new year?
Widespread distribution, acceptance and
effectiveness of COVID-19 vaccines could
drive increased consumer confidence. More
economic stimulus — such as the recent
round of checks distributed to struggling
consumers — should help, as well.
And while some industry experts believe
that the resurgence in vehicle miles driven
might have plateaued during the fourth
quarter of 2020, personal vehicles will remain
the preferred mode of transportation as
the airline industry continues to struggle
in the new year.
According to the latest projections by
the International Air Transport Association,
the global airline industry’s 2021 revenue
is expected to plummet 46% from 2019
levels. This will have a significant impact
on domestic carriers.
36
03_MTD_Facts.indd 36
2020 replacement
Passenger Tire
Brand Market Shares
(based on an estimated 202.6 million units)
Goodyear.............................................11.0%
Michelin................................................9.0%
Firestone................................................7.0%
Bridgestone..........................................6.5%
Falken....................................................5.0%
Continental............................................4.5%
Cooper....................................................4.5%
BFGoodrich...............................................4.0%
Yokohama..............................................3.5%
General..................................................3.0%
Hankook.................................................3.0%
Kumho....................................................3.0%
Multi-Mile................................................2.5%
Nexen.....................................................2.5%
Toyo........................................................2.5%
GT Radial...............................................2.0%
Pirelli......................................................2.0%
Sailun.....................................................2.0%
Sumitomo..............................................2.0%
Uniroyal..................................................2.0%
Hercules................................................1.5%
Nitto........................................................1.5%
Primewell...............................................1.5%
Sentury...................................................1.5%
Big O......................................................1.0%
Kenda.....................................................1.0%
Mastercraft...........................................1.0%
Maxxis...................................................1.0%
Others....................................................8.5%
2020 replacement
Light Truck Tire Brand
Market Shares
(based on an estimated 30.4 million units)
Goodyear.............................................10.0%
BFGoodrich...............................................7.5%
Firestone................................................6.5%
Michelin.................................................6.5%
Bridgestone..........................................6.0%
Cooper....................................................5.5%
General..................................................5.5%
Toyo........................................................5.0%
Yokohama...............................................5.0%
Falken.....................................................4.0%
Hankook.................................................3.5%
Kumho....................................................3.0%
Multi-Mile..............................................3.0%
Hercules.................................................2.5%
Continental............................................2.0%
Maxxis...................................................2.0%
Pirelli......................................................2.0%
Sailun.....................................................2.0%
Uniroyal.................................................2.0%
Kenda.....................................................1.5%
Nexen.....................................................1.5%
Sumitomo.................................................1.5%
Big O.......................................................1.0%
GT Radial...............................................1.0%
Kelly........................................................1.0%
Mastercraft...........................................1.0%
Nitto........................................................1.0%
Others....................................................7.0%
MTD January 2021
1/13/21 1:55 PM
 OE ROLLERCOASTER
To say that demand for OE tires merely
declined during the first half of the year
would be a major understatement.
By the end of March, more than 90%
of auto manufacturers in the U.S. had
slammed on the brakes, according to some
reports — sending shockwaves through the
supply chain that forced many domestic
tire manufacturers to temporarily suspend
production.
COVID-19 also had a profound impact
on consumer spending as new vehicle
purchases hit the basement in April.
However, this was followed by a vehicle
sales increase of more than 50% in May and
smaller fluctuations throughout the rest
of 2020, according to Moody’s Analytics
— the majority of them trending upwards,
albeit slightly.
All factors taken into account, light
vehicle builds in North America are
expected to total around 12 million for
the year, a 20% drop from 2019 numbers.

2020 North American OE Consumer Tire Market Share
BMW
Pirelli...................................34%
Continental.........................26%
Bridgestone.......................25%
Dunlop...................................8%
Michelin..................................5%
Hankook..................................1%
Yokohama...............................1%
FCA
Goodyear............................36%
Michelin.............................14%
Bridgestone.......................13%
Firestone..............................7%
Continental...........................5%
Yokohama.............................5%
Falken...................................4%
BFGoodrich..........................3%
General.................................3%
Nexen...................................3%
Hankook...............................2%
Kumho..................................2%
Pirelli.....................................3%
Ford
Goodyear.............................24%
Michelin.............................24%
Continental.........................20%
Hankook.............................10%
Pirelli.....................................9%
General.................................7%
BFGoodrich..........................3%
Bridgestone.........................2%
Toyo.........................................1%
General Motors
Goodyear............................37%
Michelin.............................22%
Bridgestone.......................14%
Firestone............................12%
Continental...........................6%
Hankook...............................5%
General.................................2%
Pirelli.....................................2%
2020 NORTH AMERICAN
OE CONSUMER TIRE
Honda Tesla MARKET SHARE
Goodyear..............................25% Continental.........................40%
Michelin.............................25% Michelin.............................25% (BRAND TOTALS)
(based on 47.8 million con-
Bridgestone.........................17% Goodyear.............................20%
sumer tire units, excluding
Continental.........................17% Pirelli...................................10% import vehicles)
Hankook...............................9% Hankook...............................5%
Yokohama.............................4%
Firestone...............................3% Toyota Brand 2020
Bridgestone.......................25%
Hyundai/Kia Michelin.............................25% Goodyear 25.0%
Hankook.............................41% Goodyear............................12%
Kumho.................................29% Continental...........................6%
Michelin 19.6%
Nexen.................................20% Dunlop...................................6%
Continental.........................10% Hankook...............................6%
BFGoodrich..........................5% Continental 13.9%
Mercedes-Benz Toyo.........................................5%
Continental/........................32% Yokohama.............................4% Bridgestone 13.1%
Pirelli...................................25% Firestone..............................3%
Bridgestone.......................14% General.................................2% Hankook 7.3%
Michelin.............................11% Falken....................................1%
Goodyear..............................7%
Dunlop..................................6% Volkswagen Firestone 4.0%
Cooper..................................4% Continental.........................46%
Yokohama.............................1% Goodyear..............................14% Pirelli 3.5%
Kumho.................................14%
Nissan Hankook..............................11%
Continental.........................29% General 2.4%
Falken...................................9%
Michelin.............................28% Bridgestone.........................5%
Goodyear............................17% Kumho 2.0%
Nexen...................................1%
Falken...................................7%
Bridgestone.........................5% Volvo BFGoodrich 1.8%
Toyo.......................................5% Pirelli...................................50%
BFGoodrich..........................4% Continental.........................30% Yokohama 1.8%
Hankook................................2% Michelin.............................20%
Dunlop..................................1%
General.................................1% Nexen 1.5%
Kumho...................................1%
Dunlop 1.2%
Subaru
Bridgestone..........................57%
Toyo 1.1%
Continental.........................27%
Goodyear..............................8%
Falken....................................6% Others 1.8%*
Yokohama.............................2%
*”OTHERS” INCLUDES FALKEN AND COOPER

w w w . M o d e r n T i r e D e a l e r. c o m 37

03_MTD_Facts.indd 37 1/12/21 11:16 AM

 Distribution

Changing channels
INDEPENDENT DEALERS CONTINUE TO DOMINATE

BRIDGESTONE INCLUDES FIRESTONE COMPLETE AUTO CARE, TIRES PLUS, HIBDON TIRES AND WHEEL WORKS LOCATIONS; 2 MAVIS MERGED WITH TOWN FAIR TIRE CENTERS AT THE END OF 2020.; 3 TBC OPERATES TIRE KINGDOM AND NTB TIRE & SERVICE CENTER LOCATIONS;
ndependent tire dealers remain the dominant force in PLAY IT AGAIN, SAM?
replacement consumer tire retail sales in the United States Despite consumers’ continued preference for buying tires at
and even gained ground during 2020 as vehicle owners turned independent tire dealerships, most warehouse clubs have managed
to them for expert advice and service when pent-up demand to hold their ground.
that accumulated during the first few months of the COVID-19 Costco Wholesale Corp. added locations during 2020, bringing
pandemic finally loosened. its current count up to 554, a gain of nearly 1.5% from this time
At the same time, mass merchandisers lost share, which was last year and up 3.9% from 2018. (California has the most Costco
driven in large part by the temporary shutdown of Walmart Auto locations, with 131 outlets.)
Care Centers after the pandemic hit, followed by a slower-than-
anticipated reopening of those outlets. Warehouse Clubs in the U.S.
Auto dealerships and tire company-owned stores maintained
their respective positions versus last year. Warehouse club 2020 2019 2018
While the below chart tracks market share for brick-and-mortar
operations, it should be noted that online tire sales accelerated during Sam’s Club 557 599 597
2020 due to stay-at-home orders and changing consumer habits. Costco Wholesale Corp. 554 546 533

U.S. Consumer Tire Retail BJ’s Warehouse Club Inc. 219 219 223

Market Share By Channel AND NOW THERE ARE TWO

Channel 2020 2019 2018 Looking at tire manufacturer-owned retail stores in the U.S.,
the number of Bridgestone outlets remained flat year-over-year.
Independent tire dealers 65.5% 63.0% 62.5% Goodyear Tire & Rubber Co.’s company-owned retail store
count decreased from 580 at the end of 2019 to 557 at press time.
Auto dealerships 9.5% 9.5% 9.5%
A third tiremaker, Nokian Tyres plc, exited the company-owned

GOODYEAR INCLUDES GOODYEAR AUTO SERVICE AND JUST TIRES LOCATIONS; 5 LES SCHWAB INCLUDES ONLY COMPANY-OWNED STORES
Mass merchandisers 8.0% 10.5% 10.5% retail store channel in September 2020 by selling its 10 Vianor
Tire Centers. (All Vianor stores were in the New England area.)
Warehouse clubs 8.0% 8.5% 8.5%
Tire company-owned stores 6.0% 6.0% 6.5% Other Top Tire Retailers in the U.S.
Miscellaneous outlets 3.0% 2.5% 2.5%
Retailer Locations
WALMART TEMPORARILY SHUTTERED ITS WALMART AUTO CARE CENTERS DURING 2020.
Walmart Auto Care Centers 2,582
In line with gains made in the replacement consumer tire sales
channel, independents continue to gain in the wholesale channel, Bridgestone Retail Operations1 2,200
as well — now making up 80% of the U.S. wholesale market,
Monro Inc. 1,242
followed by tire company-owned stores, which held a flat position
year-over-year, and miscellaneous outlets, which lost some share. Discount Tire Co./America’s Tire 1,071

U.S. Consumer Wholesale Mavis Tire/Town Fair Tire Centers 1,003

2

Market Share By Channel Pep Boys — Manny, Moe & Jack 951
Ford Quick Lane Tire & Auto Centers 802
Channel 2020 2019 2018 TBC Corp.3 621
Independent
80.0% 79.0% 79.5% Goodyear Tire & Rubber Co.4 557
wholesale/distributors
Tire company-owned outlets 8.0% 8.0% 7.0% Les Schwab Tire Centers Inc.5 443

Miscellaneous outlets 12.0% 13.0% 13.5% Sears Auto Centers 39

1

38 MTD January 2021

03_MTD_Facts.indd 38 1/13/21 10:47 AM

 Distribution
DEALERSHIP LOCATIONS BY THE NUMBERS Mountain 8%
Out of the nine regions that make up the U.S., the South Atlantic Montana..................................................................................9%
area has the most independently owned tire dealership locations, Idaho........................................................................................10%
with 21% of the total. The East North Central region is next at Wyoming.................................................................................4%
14%. The Pacific and West South Central regions are tied, with Colorado..................................................................................24%
13% each. The West North Central area rounds out the “top five.” New Mexico...........................................................................10%
Arizona....................................................................................18%
Independent Tire Dealer Utah..........................................................................................15%
Nevada....................................................................................10%
Locations By Region and State Pacific 13%
(Based on 29,000 total)
Alaska......................................................................................1%
Washington............................................................................13%
New England 5% Oregon.....................................................................................10%
Maine......................................................................................11% California.................................................................................75%
New Hampshire.....................................................................16% Hawaii.....................................................................................1%
Vermont.................................................................................. 6%
Massachusetts......................................................................39% BRAND BATTLE ROYALE
Rhode Island..........................................................................6% The MTD 100, which is published each July, lists the 100 largest
Connecticut............................................................................22%
independent tire store chains in the U.S., based on their number
Middle Atlantic 9% of outlets. The MTD 2020 also drills down into the brands that
New York................................................................................ 36% each dealership sells.
New Jersey............................................................................21% Here are the 20 most-mentioned brands in the 2020 MTD 100,
Pennsylvania..........................................................................43% based on the number of dealerships that carry them.
East North Central 14%
Ohio......................................................................................... 30% Brands Listed in the 2020 MTD 100
Indiana....................................................................................15%
2020 DEALERSHIPS/ 2019
Illinois......................................................................................24%
RANKING BRAND LOCATIONS RANKING
Michigan.................................................................................19%
Wisconsin...............................................................................12% 1 Michelin 80/6,637 1
West North Central 10% 2 BFGoodrich 75/5,956 3
Minnesota.............................................................................. 21%
Iowa.........................................................................................17% 3 Bridgestone 74/5,399 5
Missouri..................................................................................29% 4 Continental 70/6,855 2
North Dakota......................................................................... 4%
South Dakota......................................................................... 4% 5 Firestone 68/4,131 7
Nebraska................................................................................10% 5 Goodyear 68/5,646 4
Kansas.....................................................................................15%
7 General 59/5,453 6
South Atlantic 21%
Delaware................................................................................1% 7 Uniroyal 59/3,094 9
Maryland................................................................................ 6% 7 Yokohama 59/4,788 8
Washington, D.C................................................................... 0%
Virginia....................................................................................13% 10 Cooper 54/5,323 10
West Virginia...............................................................................3% 11 Hankook 48/5,599 11
North Carolina....................................................................... 20%
South Carolina.......................................................................9% 12 Dunlop 42/4,939 12
Georgia....................................................................................18% 13 Toyo 36/3,414 16
Florida......................................................................................30%
14 Kelly 34/2,111 14
East South Central 7%
Kentucky.................................................................................21% 15 Pirelli 33/4,271 13
Tennessee..............................................................................35% 16 Falken 31/3,239 17
Alabama..................................................................................27%
Mississippi............................................................................. 17% 17 Kumho 28/3,538 15

West South Central 13% 18 Nexen 23/1,007 18

Arkansas.................................................................................10% 18 Nitto 23/2,439 19
Louisiana.................................................................................13%
Oklahoma............................................................................... 10% 20 Nokian 14/1,100 20
Texas.......................................................................................67% NUMBERS ARE BASED ON TIRE DEALERSHIPS’ SELF-DISCLOSURES AND ADDITIONAL MTD RESEARCH.

40 MTD January 2021

03_MTD_Facts.indd 40 1/12/21 11:16 AM

 Tire sizing

Up, up and away!

LARGE-DIAMETER TIRES CROWD PASSENGER, LT SEGMENTS

O
ne trend that will not reverse itself is the move toward Most Popular Most Popular Domestic OE
larger-diameter passenger and light truck tires, both at Replacement Passenger/LT Tire Sizes
the OE and replacement levels. Passenger Tire Sizes *SOURCE: USTMA

*SOURCE: USTMA
In the P-metric category, one new 17-inch size, two OE P-Metric/Metric (current)
new 19-inch sizes, one new 20-inch size and one new Rank Size
Size % of total
21-inch size were added in 2020. Total P-metric sizes that are
1 225/65R17
currently available equal 370. 235/45R18 4.7%
2 205/55R16
275/55R20 4.3%
Available Passenger Car 3 215/55R17
Sizes by Rim Diameter 4 215/60R16
225/65R17 4.1%
235/60R18 3.9%
12-inch: 1 13-inch: 14 14-inch: 26 15-inch: 55 5 195/65R15
235/40R19 3.4%
16-inch: 61 17-inch: 61 18-inch: 65 19-inch: 30 6 225/50R17
OE Light Truck (current)
20-inch: 34 21-inch: 3 22-inch: 10 23-inch: 2 7 225/60R16
Size % of total
24-inch: 7 26-inch: 1 *SOURCE: TIRE & RIM ASSOCIATION 8 235/65R17
LT275/70R18 13.6%
9 225/60R17
In the LT metric category, one new 18-inch size and one new LT245/75R17 11.9%
10 235/60R18
34-inch size were added this past year. The total number of LT
metric sizes equal 176. Currently, 225/65R17 is the most 235/65R16 C 11.6%
popular passenger tire size in LT275/65R18 10.8%
Available LT Metric Sizes
the replacement channel. Four
more 17-inch sizes are in the LT275/65R20 9.4%
by Rim Diameter replacement passenger tire “top
10,” listed above. (An 18-inch OE P-Metric/Metric
size is at number 10.) (previous year)
14-inch: 6 15-inch: 18 16-inch: 37
17-inch: 30 18-inch: 33 20-inch: 23 Most Popular Size % of total
Replacement LT Tire Sizes 225/65R17 4.1%
22-inch: 17 24-inch: 9 26-inch: 3 *SOURCE: USTMA

235/60R18 3.8%
*SOURCE: TIRE & RIM ASSOCIATION Rank Size
275/55R20 3.5%
1 LT265/70R17
In the LT high flotation category, one new 15-inch size, two new
235/45R18 3.3%
17-inch sizes, one new 20-inch size, two new 22-inch sizes and 2 LT245/75R16
one new 24-inch sizes were added in 2020. The total number of 235/40R19 3.0%
available LT high flotation sizes now equals 100. 3 LT225/75R16
4 LT275/70R18 OE Light Truck (previous year)

Available LT High Flotation 5 LT265/75R16 Size % of total

Sizes By Rim Diameter 6 LT245/75R17 LT245/75R17 13.1%

7 LT235/80R17 235/65R16 LRC 11.8%
14-inch: 1 15-inch: 22 17-inch: 18
8 LT285/70R17 LT275/70R18 10.3%
18-inch: 15 20-inch: 21 22-inch: 9
9 LT275/65R18 LT275/65R18 8.6%
24-inch: 9 26-inch: 3 28-inch: 2
10 LT235/85R16 LT225/75R16 8.3%
*SOURCE: TIRE & RIM ASSOCIATION

44 MTD January 2021

*SOURCE: USTMA
03_MTD_Facts.indd 44 1/12/21 11:17 AM
 Tire pricing

PRICES CLIMBED DURING 2020

A LOOK AT PRICING BY TIER, REGION AND MORE

P
erhaps the most significant pric-
ing trend observed during 2020
2020 Average U.S. Advertised Tire Prices
was the aforementioned “flight to Size Major Brand Low-Cost Overall
value” made by consumers who
were financially impacted by the 235/60R14 $160.38 $115.77 $138.45
COVID-19 pandemic.
This trend remained as 2020 drew to 235/75R16 $153.20 $88.46 $124.20
a close — placing a capstone on a year in 205/55R16 $136.32 $68.81 $120.57
which prices across all tiers continued to
increase. 215/60R16 $123.93 $72.71 $111.18
“Over the course of 2020, we have seen 215/55R17 $157.38 $78.89 $134.34
tire prices across all steps trend upward
slightly,” confirms J.P. Brooks, director of 275/65R18 $236.10 $146.79 $215.21
business development for The Fitment
LT225/75R16 $190.17 $109.54 $163.49
Group, which collects and analyzes more
than eight million individual retail tire LT245/75R16 $207.27 $124.58 $180.30
prices each week.
“We found that the East South Cen- LT245/75R17 $228.03 $137.46 $198.29
tral market — which includes Tennessee, 31X10.5R15 $190.51 $138.75 $169.82
Kentucky, Mississippi and Alabama — saw *SOURCE: THE FITMENT GROUP (WWW.FITMENTGROUP.COM)
the most significant price increase” at the
opening price point and fourth tier levels,
specifically in size 225/65R17. The following major brand sizes listed above saw year-over-year price increases: 235/60R14,
“This market also trended to the higher 235/75R15, 205/55R16, 215/60R16, 275/65R18, LT225/75R16, LT245/75R16 and
end of advertised prices across all tiers of LT245/75R17. The following major brand sizes were priced lower, year-over-year: 215/55R17
this specific size,” he adds. and 31x10.50R15.

TO THE EAST
According to The Fitment Group’s research,
“some of the highest average pricing resides
Pricing By U.S. Region
in the New England market,” reveals Brooks. (Size LT265/70R17)
The most dramatic price fluctuations Region Size OPP Value Better Best Winter
happened in May, according to Fitment
Group data. East North LT265/70R17 $150.29 $199.97 $213.98 $233.05 $210.41
“We did see a small dip in pricing in Central
the months of August and September, East South LT265/70R17 $149.05 $203.96 $220.91 $238.78 $218.00
followed by a rebound in October.” Central
The charts on these pages list passenger Middle Atlantic LT265/70R17 $134.01 $188.96 $214.63 $234.26 $209.65
and light truck tire prices as they stood Mountain LT265/70R17 $157.97 $216.70 $208.70 $227.07 $202.08
near the end of the year, broken down
New England LT265/70R17 $146.05 $175.49 $227.84 $241.76 $212.78
by price point, region and speed rating.
(Regions listed on this page are identified Pacific LT265/70R17 $153.29 $196.46 $200.60 $217.76 $198.49
slightly differently than the list of regions South Atlantic LT265/70R17 $143.22 $197.96 $214.67 $229.17 $205.55
found on page 40.)
The Fitment Group also provided a West North LT265/70R17 $155.37 $207.46 $209.79 $227.03 $201.33
Central
detailed look at online tire pricing across
numerous e-commerce portals, including West South LT265/70R17 $147.24 $201.62 $211.18 $225.25 $198.39
Central
several that are operated by independent
tire dealerships. *SOURCE: THE FITMENT GROUP (WWW.FITMENTGROUP.COM)

46 MTD January 2021

03_MTD_Facts.indd 46 1/12/21 11:18 AM

 Pricing By Speed Rating
2020 Advertised Pricing Breakdown (Size 215/55R17)

Tire Speed Major Brand Low-Cost Overall

T $133.72 $101.30 $128.75
H $153.30 $94.58 $136.60
V $162.00 $76.59 $136.56
*SOURCE: THE FITMENT GROUP (WWW.FITMENTGROUP.COM)

E-COMMERCE GROWS
The COVID-19 pandemic rapidly accelerated consumer usage of e-commerce portals.
For comparison purposes, The Fitment Group collected the following advertised prices
for two specific lines and sizes across a wide spectrum of websites:

Online Tire Pricing

2020 Advertised Pricing Breakdown

Nexen RoAdian GTX Toyo Open Country AT IIII

(size 225/65R17) (size LT245/75R16)
Website Price Website Price PRICES ARE GOING UP
A number of tire manufacturers enacted
amazon.com $108.39 allamericanautoandtire.com $108.39 price hikes last month and earlier this month.
Hankook Tire America Corp. raised its
bigbrandtire.com $118.93 americantiredepot.com $138.06
commercial truck tire prices up to 5% on
canadawheels.ca $141.11 belletire.com $185.00 Dec. 1, the same day that Yokohama Tire
Corp.raised prices on select truck tires by
jackwilliams.com $120.95 bigbrandtire.com $236.99 up to 6% — following a consumer tire price
lowtireprice.com $106.00 integratire.com $330.00 hike of up to 5% that was enacted on Nov. 1.
Goodyear Tire & Rubber Co. raised
onlinetires.com $114.99 mavistire.com $184.08 prices on its Goodyear and Dunlop brand
simpletire.com $118.98 onlinetires.com $184.08 consumer tires on Dec. 1.
Sumitomo Rubber North America
tirediscounters.com $137.00 pneuschartrand.ca $231.20 (SRNA) boosted its commercial truck tire
prices up to 6% on Dec. 1.
tireseasy.com $111.45 prioritytire.com $206.64
SRNA followed that on Jan. 1 with a
walmart.com 108.39 quicklane.com $216.00 consumer tire price hike of up to 8%, the
same day that Bridgestone Americas Inc.
simpletire.com $184.08
increased the price of certain passenger
tireamerica.com $184.08 and light truck tires, without publicizing
exact amounts.
tirebuyer.com $184.08 Pirelli Tire North America Inc. raised
tirecraft.com $261.25 rates on its passenger and light truck tires,
varying by line and size, at the start of the
tirerack.com $193.36 new year. Michelin North America Inc.
tireseasy.com $184.08 will increase prices on select Michelin
and BFGoodrich brand consumer tires
townfair.com $195.00 up to 5% on Feb. 1
What’s next? “Forecasting tire prices
walmart.com $182.48
is very challenging at this time,” says The
Fitment Group’s Brooks, due to an appar-
ent top-out in miles driven and ongoing
uncertainty around COVID-19.

w w w . M o d e r n T i r e D e a l e r. c o m 47

03_MTD_Facts.indd 47 1/13/21 10:48 AM

 Commercial tire market
Diamond in the rough
COMMERCIAL WAS A BRIGHT SPOT
DURING A TOUGH YEAR
T
he medium truck tire segment
was impacted much less than
the passenger and light truck tire
segments during the early weeks of
the COVID-19 pandemic.
After a somewhat rough, pre-COVID-19
start — in which the medium truck tire
market contracted by 8% in January and
14% in February — the segment rebounded
in March.
This was primarily driven by large pre-
buys as fleets worried about potential tire
shortages caused by plant shutdowns.
Demand fluctuated over the next few
months as the trucking industry grappled
with declining freight movement. (The
American Trucking Associations’ tonnage
index plunged 12.2% in April, the biggest
monthly decline in more than 25 years.)
However, by mid-year, the supply-
demand balance had improved to the point
where one commercial truck tire executive
remarked that “the worst is behind us.”
(MTD estimated that nearly eight million
truck tire units had been shipped in the
U.S. by the middle of May.)
Since then, replacement truck tire
sales have been buoyed by rebounds in
manufacturing and construction, continued
activity by essential fleets and improving
freight rates.
The segment enjoyed its best month
since March 2020 this past October. And
November and December delivered solid
demand, as well.
However, as the year ended, supply
constraints posed a problem.
MTD estimates that 18.5 million truck
tire units were shipped in 2020, slightly down
from 18.9 million units shipped in 2019.
48
03_MTD_Facts.indd 48
2020 U.S. Replacement
Medium/Heavy Truck
Tire Brand Shares
(based on 18.5 million units)
Brand Share
Bridgestone.........................................13.5%
Michelin...............................................13.5%
Goodyear...............................................9.5%
Yokohama..............................................8.5%
Continental............................................7.0%
Firestone................................................7.0%
Double Coin...........................................5.0%
Hankook.................................................3.5%
Falken.....................................................3.0%
Roadmaster...........................................3.0%
Toyo........................................................3.0%
Hercules.................................................2.5%
BFGoodrich............................................2.0%
General..................................................2.0%
Sailun.....................................................2.0%
Sumitomo...............................................2.0%
Westlake................................................1.5%
Dayton....................................................1.0%
Gladiator................................................1.0%
Triangle...................................................1.0%
Uniroyal..................................................1.0%
Others......................................................7.5%
The growth of the “others” category beyond
2019 levels (6.5%) reflects the entry of more
brands into the U.S. marketplace. (Brands
must have at least 1% share of market to
appear on the above list.)
RETREADING: STEADY AS SHE GOES
The explosion of truck tire retread sales
that was expected to occur as the result of
tariffs placed on new truck tire imports
from China didn’t materialize in 2020, as
some had predicted at the start of the year.
But numerous independent retreaders
took the opportunity to invest in their
operations, with several expanding into
new markets and others making significant
upgrades to existing facilities or opening
new plants. (There currently are around
640 medium truck tire retread plants and
17 OTR tire retread plants in the U.S.)
Overall, tracking similarly to new truck
tire sales, demand for medium truck tire
retreads fell slightly from 2019 levels, ending
the year at an estimated 14 million units.
2020 U.S. Retreaded
Truck Tire Market SharE
(based on 14 million units)
Bridgestone/Bandag............................44.0%
Goodyear................................................23.0%
Michelin/Oliver......................................23.0%
Marangoni.............................................5.5%
Continental................................................3.5%
Others.....................................................1.0%
AG TIRES PLOWED AHEAD
Demand for ag tires remained healthy
during 2020, particularly at the replace-
ment level. An estimated 2.75 million
total ag tires were shipped in the U.S.
last year — at both replacement and
OE — across several categories.
2020 Ag Tire Shipments
Category 2020 Shipments
Radial rear OE..................................190,000
Radial rear replacement................298,700
Bias rear OE.....................................320,000
Bias rear replacement....................390,000
Small OE............................................310,000
Small replacement...................1.25 million
MTD January 2021
1/12/21 11:21 AM
 Plant capacities

North American Tire Plant Capacities AS OF JANUARY 1, 2021 (IN THOUSANDS OF UNITS)
Company/Plant Location/Year Constructed Non-Union ISO Certified Passenger per day Light truck per day Truck per day Others per day Total
Bridgestone Americas Inc.
Aiken, S.C., 2013 x 0.0 0.0 0.0 0.03 0.03
La Vergne, Tenn., 1972 x 0.0 0.0 6.0 0.0 6.0
Warren County, Tenn., 1990 x 0.0 0.0 9.1 0.0 9.1
Bloomington, Ill., 1965 x 0.0 0.0 0.0 0.33 0.33
Des Moines, Iowa, 1945 x 0.0 0.0 0.0 4.57 4.57
Wilson City, N.C., 1974 x x 28.0 0.0 0.0 0.0 28.0
Aiken County, S.C., 1999 x x 25.5 10.2 0.0 0.0 35.7
Joliette, Quebec, Canada, 1966 x 10.3 7.3 0.0 0.0 17.6
Monterrey, Mexico, 2007 x 6.8 0.0 0.0 0.0 6.8
Cuernavaca, Mexico, 1980 x 13.5 7.5 0.0 0.0 21.0
Total: 84.1 25.0 15.1 4.93 129.13
Carlstar Group LLC
Jackson, Tenn., 2009 x x 0.0 0.0 0.0 26.0 26.0
Clinton, Tenn. (Dico), 1974 x x 0.0 0.0 0.0 15.0 15.0
Total: 0.0 0.0 0.0 41.0 41.0
Continental Tire the Americas LLC
Sumter, S.C., 2013 x 12.5 1.0 0.0 0.0 13.5
Mount Vernon, Ill., 1973, 1988 x x 30.0 4.0 10.3 0.0 44.3
Clinton, Miss., 2020 0.0 0.0 2.8 0.0 2.8
Total: 42.5 5.0 13.1 0.0 60.6
Cooper Tire & Rubber Co.
Findlay, Ohio, 1917 x 7.0 16.0 0.0 0.0 23.0
Texarkana, Ark., 1964 x 24.0 8.0 0.0 0.0 32.0
Tupelo, Miss, 1984/1960 x x 42.0 0.0 0.0 0.0 42.0
Total: 73.0 24.0 0.0 0.0 97.0
Giti Tire (USA) Ltd.
Richburg, S.C., 2017 x x 15.0 0.0 0.0 0.0 15.0
Total: 15.0 0.0 0.0 0.0 15.0
Goodyear Tire & Rubber Co.
Danville, Va., 1966 x 0.0 0.0 11.0 2.0 13.0
Fayetteville, N.C., 1969 x 31.0 10.5 0.0 0.0 41.5
Lawton, Okla., 1978 x x 64.5 0.0 0.0 0.0 64.5
Topeka, Kan., 1945 x 0.0 0.5 5.5 0.1 6.1
Medicine Hat, Alberta, Canada, 1960 x 0.0 0.0 0.0 13.0 13.0
Napanee, Ontario, Canada, 1990 x x 19.0 0.0 0.0 0.0 19.0
San Luis Potosi, Mexico, 2017 x 16.4 0.0 0.0 0.0 16.4
Total: 130.9 11.0 16.5 15.1 173.5
Hankook Tire America Corp.
Clarksville, Tenn., 2016 x 12.6 1.3 0.0 0.0 13.9
Total: 12.6 1.3 0.0 0.0 13.9
Kumho Tire Co. Inc.
Macon, Ga., 2015 x x 11.0 0.0 0.0 0.0 11.0
Total: 11.0 0.0 0.0 0.0 11.0
Michelin North America Inc.
Ardmore, Okla., 1969 x x 37.5 3.4 0.0 0.0 40.9
Dothan, Ala., 1979 x 0.0 9.5 0.0 0.0 9.5
Fort Wayne, Ind., 1961 25.5 10.7 0.0 0.0 36.2
Greenville, S.C., 1975 x 36.7 0.0 0.0 0.0 36.7
Greenville, S.C. (C3M), 1996 x x 8.7 0.0 0.0 0.0 8.7
Piedmont, S.C. (Tweel), 2014 x 0.0 0.0 0.0 0.07 0.07
Lexington, S.C., 1981 x 26.5 0.0 0.0 0.0 26.5
Lexington, S.C., 1998 x x 0.0 0.0 0.0 0.1 0.1

50 MTD January 2021

03_MTD_Facts.indd 50 1/12/21 11:21 AM

 Company/Plant Location/Year Constructed Non-Union ISO Certified Passenger per day Light truck per day Truck per day Others per day Total
Spartanburg, S.C., 1978 x 0.0 0.0 6.4 0.0 6.4
Starr, S.C., 2013 x 0.0 0.0 0.0 0.01 0.01
Tuscaloosa, Ala., 1945 19.7 5.5 0.0 0.0 25.2
Bridgewater, Nova Scotia, Canada, 1971 x 14.1 4.0 0.0 0.0 18.1
Granton, Nova Scotia, Canada, 1971 x 2.7 0.0 0.0 0.0 2.7
Waterville, Nova Scotia, Canada, 1982 x 0.0 0.0 7.0 0.5 7.5
Queretaro, Mexico, 2002 x 6.0 0.0 0.0 0.0 6.0
Leon, Mexico, 2018 4.0 0.4 0.0 0.0 4.4
Total: 181.4 33.5 13.4 0.68 228.98
Nokian Tyres plc
Dayton, Tenn., 2019 x x 1.7 1.1 0.0 0.0 2.8
Total: 1.7 1.1 0.0 0.0 2.8
Pirelli Tire North America Inc.
Rome, Ga. (MIRS), 2002 x x 1.2 0.0 0.0 0.0 1.2
Guanajuato, Mexico, 2011, 2018 x 20.0 0.0 0.0 0.0 20.0
Total: 21.2 0.0 0.0 0.0 21.2
Specialty Tires of America Inc.
Indiana, Pa., 1915 x x 0.92 0.18 0.05 2.35 3.5
Unicoi, Tenn., 1997 x x 0.3 0.5 0.05 0.25 1.1
Total: 1.22 0.68 0.1 2.6 4.6
Sumitomo Rubber USA LLC (Sumitomo Rub-
ber North America Inc.)
Tonawanda, N.Y., 1923 7.3 2.7 2.3 5.0 17.3
Total: 7.3 2.7 2.3 5.0 17.3
Titan Tire Corp.
Bryan, Ohio, 1967 x 0.0 0.0 0.0 0.33 0.33
Des Moines, Iowa, 1943 x 0.0 0.0 0.0 11.25 11.25
Freeport, Ill., 1964 x 0.0 0.0 0.0 8.1 8.1
Total: 0.0 0.0 0.0 19.68 19.68
Toyo Tire North America Manufacturing Inc.
White, Ga., 2005 x x 40.0 6.5 0.0 0.0 46.5
Total: 40.0 6.5 0.0 0.0 46.5
Trelleborg Wheel Systems
Spartanburg, S.C., 2015 x 0.0 0.0 0.0 0.07 0.07
Charles City, Iowa, 2012 0.0 0.0 0.0 0.5 0.5
Total: 0.0 0.0 0.0 0.57 0.57
Yokohama Tire Corp.
West Point, Miss., 2015 x x 0.0 0.0 3.0 0.0 3.0
Salem, Va., 1968 25.7 1.1 0.0 0.0 26.8
Total: 25.7 1.1 3.0 0.0 29.8
Grupo Carso/Euzkadi
(Continental AG)
San Luis Potosi, Mexico x 0.0 14.2 3.8 0.0 18.0
Total: 0.0 14.2 3.8 0.0 18.0
JK Tyre & Industries
(formerly CIA Hulera Tornel)
Mexico City, Mexico 0.0 1.0 1.0 0.14 2.14
Tultitlan, Mexico 7.0 1.5 0.5 0.0 9.0
Tacuba, Mexico 8.0 2.5 0.0 0.0 10.5
Total: 15.0 5.0 1.5 0.14 21.64
Corporacion de Occidente
SA de CV (Cooper Tire)
Guadalajara, Mexico, 2005 x x 10.0 7.2 2.8 0.0 20.0
Total: 10.0 7.2 2.8 0.0 20.0

U.S. Totals 534.82 92.68 56.50 76.06 760.06

Canadian Totals 46.10 11.30 7.00 13.50 77.90
Mexican Totals 91.70 34.30 8.10 0.14 134.24
TOTAL: 672.62 138.28 71.60 89.70 972.20

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03_MTD_Facts.indd 51 1/12/21 11:21 AM

 Automotive service
Auto service snapshot
TPMS IS THE MOST COMMON SERVICE OFFERED
O
ne hundred percent of revenue gen-
eration from only the sale of tires
and the performance of tire work is
becoming increasingly rare among
independent tire dealerships.
According to MTD’s recently conducted
2020 Tire Dealer Automotive Service Study,
48% of tire dealers expect 48% of their
full-year sales to come from auto service.
They also expect auto service to make up
47% of their overall operating profit.
TIRE WORK DOMINATES
Tire/wheel-related services are among the
most common performed by independent
tire dealerships, according to MTD’s recent
study.
Nearly 100% of tire dealerships reported
that they perform tire pressure monitoring
system (TPMS) service. Ninety-five percent
perform mounting and balancing work,
followed by brake service at 92%.
Eighty-six percent reported that they offer
shock/strut service, as well as battery and
other electrical services. And 85% perform
bearing and seal work. The least common
service offered out of the 17 that are listed
below? Exhaust systems.
Automotive Services That
Tire Dealerships Offer
Service % of dealers that offer
Air conditioning.........................................59%
Alignment...............................................79%
Battery/electrical..................................86%
Bearings/seals......................................85%
Brakes.....................................................92%
Chassis/suspension..............................82%
Chemicals (injector cleaners, etc.)....55%
Cooling systems....................................64%
Electronic diagnosis.............................65%
Engine repair/diagnostics/tuneups...61%
Exhaust systems...................................52%
Ignition and spark plug........................65%
Mounting/balancing.............................95%
Oil/lubrication.........................................83%
Shocks/struts.........................................86%
TPMS.......................................................97%
Visibility (wipers)...................................79%
52
03_MTD_Facts.indd 52
LUCKY NUMBER SEVEN
Seventeen percent of respondents to MTD’s
latest study have eight service bays per
outlet.Thirteen percent have six bays. Twelve
percent of respondents have four bays. Only
4% have one service bay per outlet. Overall,
respondents have seven service bays per
outlet, on average.
NUMBER OF SERVICE BAYS
IN OPERATION
Number of bays %
1...................................................................4%
2..................................................................7%
3..................................................................11%
4...............................................................12%
5.................................................................7%
6................................................................13%
7..................................................................9%
8..................................................................17%
9...................................................................2%
10...................................................................6%
11...................................................................0
12...................................................................2%
13...................................................................0
14...................................................................3%
15...................................................................0
15+..............................................................7%
NUMBER OF Technicians
Employed Per Outlet
Number of technicians %
None.............................................................3%
1...................................................................7%
2...................................................................16%
3................................................................20%
4................................................................18%
5.................................................................8%
6................................................................11%
7.................................................................4%
8.................................................................6%
9.................................................................1%
10...............................................................3%
11...................................................................0
12...................................................................1%
13...................................................................0
14...................................................................0
15...................................................................1%
15+.................................................................1%
TECHS: HOW MANY ARE
TRAINED AND WHAT THEY DO
The average number of technicians
employed per outlet is six, according to
survey respondents. Twenty-one percent
of respondents report that 1% to 10% of
their technicians are ASE-certified.
Respondents say their technicians
perform 205 oil changes per month, on
average — followed by TPMS (120 jobs
per month), alignments (90 per month),
chassis and suspension service (58 jobs per
month) and brake work (50 per month.)
Percentage of Technicians
Who Are ASE-Certified
Technicians Dealers
None...........................................................23%
1-10%........................................................21%
11-20%.......................................................9%
21-30%.........................................................5%
31-40%..........................................................4%
41-50%.........................................................3%
51-60%..........................................................5%
61-70%..........................................................2%
71-80%..........................................................5%
81-90%..........................................................4%
91-100%......................................................19%
Number of Automotive Service
Jobs Performed Per Month
Type of service Average number
of jobs/month
Air conditioning..........................................9
Alignment...................................................90
Battery/electrical.....................................27
Bearings/seals..........................................10
Brakes.........................................................56
Chassis/suspension.................................58
Chemicals (injector cleaners, etc.).......15
Cooling systems........................................24
Electronic diagnosis................................33
Engine repair/diagnostics/tune-ups.......17
Exhaust systems.......................................11
Ignition and spark plug...............................27
Oil/lubrication..........................................205
Shocks/struts............................................18
TPMS........................................................120
Visibility (wipers)......................................40
MTD January 2021
1/12/21 11:22 AM
 Mergers and acquisitions
BUYER TIMING ACQUIRED # OF OUTLETS LOCATION(S)

Blue Skies
AutoStream Car Care 1Q Brentwood Automotive 1 Baltimore, Md.
GB Auto Service Inc. 1Q Louetta Automotive 10 Texas
Leeds West Group 1Q Midas store 1 Kearney, Neb.

Ahead
Mavis Tire Express Services 1Q NTB stores 112 Atlanta, Ga.; Boston,
Corp. Mass.; Chicago, Ill.;
Philadelphia, Pa.
Pomp’s Tire Service Inc. 1Q GCR Tires & Service 19 Iowa, Illinois, Kansas,
stores (Bridgestone) Michigan, Minne-
sota, Nebraska, North
M&A DIDN’T SLOW IN Dakota, South Dakota,
Wisconsin

2020. EXPECT MORE Steve Shannon Tire Co. Inc. 1Q K&K Tire Barn 1 Tunkhannock, Pa.
Telle Tire & Auto Service Inc. 1Q KC Complete Auto Service 5 Kansas City, Mo.

M
THIS YEAR Burt Brothers Tire & Service
Inc.
2Q Private owner (dormant
Firestone store)
1 Salt Lake City, Utah

ergers and acquisitions con-

Jack’s Tire & Oil Inc. 2Q A&E Tire Inc. 5 (commercial) Colorado
tinued unabated during 2020.
Leeds West Group 2Q Midas store 1 Oklahoma City, Okla.
Several factors drove activity,
Van’s Auto Service Tire Pros 2Q Parrish-McIntyre Tire Co. 1 Akron, Ohio
says tire dealership M&A expert
GB Auto Service Inc. 3Q Tate Boys Tire & Service 7 Oklahoma
Michael McGregor of Focus In-
vestment Banking. GB Auto Service Inc. 3Q Sun Devil Auto Service/ 32 Arizona, Nevada,
Sun Auto Service* Texas
“First, many tire dealers’ businesses
Gills Point S 3Q Vianor Tire Centers 10 New England
bounced back and many achieved record Tire & Auto Service
results after the initial shock” of COVID- Integrity Tire 3Q The Tire Guys store 1 Redlands, Calif.
19 dissipated. “Second, the stock market Auto Service Centers
boomed. And last, interest rates went even Jack Williams Tire Co. 3Q McCarthy Tire Service 1 Scranton, Pa.
lower and more cash became available. Co. Inc. store
That’s an environment conducive to getting K&M Tire Inc. 3Q Safemark 1 Middletown, Pa.
deals done.” Leeds West Groups 3Q Midas store 1 Oklahoma City, Okla.
Expect more of the same in 2021, he adds. Leeds West Groups 3Q Tires Plus store 1 Arvada, Colo.
“I think we will see M&A activity at all levels. Leeds West Groups 3Q Big O Tires stores 3 Kentucky, Ohio
The economy should continue to improve” Meritage Group LP 3Q Les Schwab 438 Oregon, Washing-
and “there is a strong likelihood that some Tire Centers Inc. ton, Alaska, Idaho,
Montana, California,
form of a long-term capital gains tax increase Nevada, Utah, Colorado,
is going to happen within the next two years. Wyoming
Owners who are thinking about selling will Monro Inc. 3Q Allen Tire Co. 17 California
want to do so before that happens. Purcell Tire & Rubber Co. 3Q Wilson Industrial Tire** 1 Springfield, Mo.
“With a stronger economy, the stock Ross and Sean Burton 3Q Big O Tires Stores 9 Colorado
market at an all-time high and cash deals Service Tire Truck Centers 3Q Highlands Tire & Service 3 (commercial) Pennsylvania
readily available, I don’t see it slowing down. /1 retread plant
I see nothing but blue skies ahead.” Telle Tire & Auto Service Inc. 3Q J&W Automotive 1 St. Louis, Mo.
The chart to the right lists tire dealership Van’s Auto Service Tire Pros 3Q Auto Tire & Service 1 Akron, Ohio
acquisitions that took place during 2020. Specialists
The largest acquisition, Meritage Group Van’s Auto Service Tire Pros 3Q Parrish-McIntyre Tire Co. 1 Medina, Ohio
LP’s purchase of Les Schwab Tire Centers AAA Northern California, 4Q McLea’s Tire & Automo- 5 California
Nevada & Utah tive Centers
Inc., encompassed nearly 440 locations.
Black’s Tire Service Inc. 4Q Burlington Tire Service Inc. 1 Burlington, N.C.
Mavis Tire made two large acquisitions:
112 National Tire & Battery (NTB) stores Border Tire LLC 4Q Canyon Tire Sales 5 (commercial) California
/1 retread plant
during the first quarter and 100 Town Fair Tire
GB Auto Service Inc. 4Q Reliable Automotive 3 Texas
Centers locations during the fourth quarter.
Leeds West Groups 4Q Big O Tires stores 2 Colorado Springs, Colo.
GB Auto Service Inc. made the fourth
Leeds West Groups 4Q Midas store 1 Norman, Okla.
largest acquisition: more than 30 Sun Devil
Auto Service/Sun Auto Service outlets. Leeds West Groups 4Q Midas store 1 Benton Harbor, Mich.
Pomp’s Tire Service Inc. acquired nearly Mavis Tire Express Services 4Q Town Fair Tire 100 Connecticut, Mas-
Corp. Centers Inc. sachusetts, Rhode
20 GCR Tires & Service outlets from Bridge- Island, New Hampshire,
stone Americas Inc. Monro Inc. acquired Vermont, Maine
17 Allen Tire Co. stores. Purcell Tire & Rubber Co 4Q Quality Tire Co. 9 Utah, Idaho,
Montana, Colorado
Leeds West Groups continued to pick
up Big O and Midas locations. Tire Discounters Inc. 4Q Porterfield Tire Inc. 2 Georgia
*GB Auto says all Sun Devil stores will sell tires
**Purcell Tire said Wilson’s operations would be incorporated into Purcell’s Springfield, Mo., location

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