Across the Atlantic they are called tires, while over here we use a “Y” and say tyres. This tag provides the latest tyre business news emanating from the United States of America (USA), whichever way you spell it.
Prices for Pirelli car and light truck tyres sold in the US market will rise from 1 January 2019. Pirelli says the increase will be up to six per cent on average; it says it is implementing the new pricing in response to higher raw materials prices and “growing investment in the development of new technologically advanced products.”
Over the past two and a half years, Prinx Chengshan has established a presence in our region with the build up of its Prinx Chengshan Europe operation in Slovakia, however the tyre maker’s international growth plans don’t just include Europe. This year a new sales and marketing subsidiary in North America is also being established. The operation is headed by John Aben, who joins the company from Giti Tire.
One way of avoiding anti-dumping duties applicable to tyres imported from China is not to import tyres from China. This is what Magna Tyre Group is now doing in the USA – the company is meeting increased demand for OTR tyres in this market by expanding its production capacity in Thailand. Tyres made in this facility, comments Magna, are don’t attract tariffs in the USA and thus offer the opportunity for the company to “massively increase our presence on American market.”
Balkrishna Industries (BKT) has provided further details regarding its plans to build a factory in the USA. With a capital outlay of up to US$100 million, funded by investments and local debt, the tyre maker intends to establish a greenfield facility with an annual capacity of 20,000 tonnes.
Meguiar made a new addition to its popular Ultimate line at the recent SEMA show in Las Vegas – Ultimate All Wheel Cleaner. The new wheel cleaner is said to be “a powerful formula that offers deep cleaning, yet is gentle enough that it can be used on any wheel finish or type”.
In the USA, Multistrada is recalling 6,318 Achilles Desert Hawk A/P LT in size LT215/85 R16 115/112R 10PR. According to a National Highway Traffic Safety Association (NHTSA) recall notice, the tyres have the DOT date code range 1915 to 3618.
Following an investigation covering the period from 1 July to 31 December 2017, the US Department of Commerce has issued a preliminary determination that steel wheels from the People’s Republic of China were (or were likely to have been) sold in the United States at less-than-fair-value. It now invites interested parties to comment on this preliminary determination.
The U.S. International Trade Commission (ITC) must reappraise its final determination on truck and bus tyres from China after the US Court of International Trade (CIT) only partially sustained the ITC’s determination that the US tyre industry has been neither materially injured nor threatened with material injury by imports of these products.
John Evankovich has been inducted as president of the Tire Industry Association’s (TIA) Board of Directors. He took office at the TIA annual membership meeting on 29 October and will serve a one-year term. In addition, the US-based industry association also introduced Brian Rigney (president, Dill Air Controls) as its vice-president and Dan Nothdurft (president, Tires, Tires, Tires) as secretary. Mike Wolfe (owner, Southeastern Wholesale Tire) will remain treasurer.
American Tire Distributors, Inc. (ATD) has written to customers saying that the company is making “making significant progress with [its] recapitalization process” in a letter published on the firm’s recapitalisation website on 28 October 2018. According to the company, the steps taken “will strengthen our financial position as we continue our successful, game-changing transformation. We have a clear roadmap for the next steps in this process and the support of our key financial stakeholders has us on track to emerge by the end of the year as a stronger company with less debt that is even better positioned to serve our customers.”
The private equity firm building up a European tyre distribution group through its acquisition of firms such as Fintyre and Reiff has made a significant investment in North America. Bain Capital reports its acquisition of a majority shareholding in US-based aftermarket tyre and parts distributor Dealer Tire, LLC. The interests of Lindsay Goldberg LLC, Dealer Tire’s investment partner since December 2014, will be acquired by Bain Capital Private Equity. The transaction is expected to close by December.
October has been a tumultuous month for US tyre distribution. First ATD filed for Chapter 11 during the first week of the month. Then, less than two week’s later Sears, which includes Sears Autocentres (itself one just two major tyre installation partners for Amazon), also applied for bankruptcy protection. Now market analysts are asking if Amazon is planning to buy ATD.
A month after its credit rating was downgraded, American Tire Distributors, Inc. (ATD), the largest tyre wholesaler not only in the USA, but in the entire NAFTA region, filed for Chapter 11 bankruptcy protection in the District of Delaware on 4 October. At the time, the company announced that it had entered into a definitive agreement with approximately 75 per cent of its bondholders on the terms of a recapitalization that would reduce the company’s debt by approximately $1.1 billion and increase its financial flexibility as it continues its ongoing transformation
Production of precipitated silica has commenced at the Evonik Industries plant in South Carolina, USA. The facility, set up with an investment of around US$120 million, will primarily meet demand from tyre manufacturers in North America for Evonik’s Ultrasil products. More than 40 new jobs have been created by the project.
The Goodyear Tire & Rubber Company has introduced a new tyre retail process that integrates online purchases with real-life fitment. “Roll by Goodyear”, as the new approach has been named, will start out in the Washington, DC, metro area where Roll by Goodyear showrooms and the multiple installation options will be available. The goal is to offer consumers the chance to purchase interchangeably between online and in-store, according to the company.
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