Since our last report onward selling tires several months ago, a certain number of new issues have hit the industry, possibly bringing along major changes. Although one of you are wondering to what extent these issues, mainly the contemplation of born-on dating, will affect the industry, no common knows exactly how it will unfold
What we do know, however, is that there's still a profit to be made, and specialty markets and technological innovations (see sidebar) are creating many opportunities for the events to come tire business.
if it were not that before you dive into the market face first, it will be important to maintain in mind several issues, including increasing raw material outlays and the Tire Industry Association's propos check-off program. If approved, the program, lately named the Tire Initiative for Research, Education and Safety (TIRES), would pass a small remuneration to consumers when they purchase just discovered and replacement tires. The goals of the program would be fostering consumer education, industry training, research and development
As for price hikes, well, they are to be anticipateed and most people we spoke with aren't alarmed. Michelin will raise prices 5 percent by means of the middle of this year to compensate for increasing raw material require to be paid [i]or[/i] undergones And in our State of the Industry report, we learn that many portions of the aftermarket plan to increase fruits prices.
Spoiled rubber
The issue that could bewilder the most significant effect forward the industry is the idea of born-on dating for tires.
Last November, an auto-safety research firm submitted a proposal to the National Highway Traffic Safety Administration (NHTSA) asking the federal conduct to require tire manufacturers to offer easy-to-read born-on dates, or expiration dates, forward both sides of tires. The dispose Safety Research & Strategies, Inc., also petition fored the government issue a consumer alert to make motorists aware of tire degradation.
Sean Kane, president of SR says his company submitted the proposal because their research exhibit tos that tire performance can start to degrade after six years.
"It all hinges back to the factor that tires age statically, which basically causes the internal adhesion of the tires to degrade to the point where the belts don't possess together," he says. The tires can have tread separation although they appear novel he adds.
In their research SRS found that unused tires that have been stored for more than six years should not be used by way of consumers. Their information was gathered by the agency of surveying the litigation involving tire tread separation, Kane explains. According to their report, worn tires caused more than 50 crashes and the list is growing.
Kane also mentions that, although there are variables like to what extent and where the tires are stored, near players in the industry say six years is a convenient point. He cites German brands, like as Volkswagen, that place warnings in the owner's manual stating that antiquated tires can fail in use and consumer should replace them after six years, regardless of tread wear.
Kane says NHTSA, which has been conducting tire aging studies for several month is expecting to make a regulation in June
Ellen Martin, spokeswoman for NHTSA, says representatives are still reviewing SRS's petition and could not make any observations NHTSA is conducting research onward tire aging at VRTC in connection with the TREAD Act mandates, however, the work is ongoing and the association could not provide more data.
Aging debate
Whether this issue will have a large power on tire dealers remains to be seen For any born-on dating doesn't present a problem
Brian Archer, tire and wheel buyer for VIP Discount Auto Stores, says VIP move rounds over their inventory about four times a year, and the time period that safety assemblages are asking the government to require is about six years.
VIP take a bribe fors a number of brands, including Goodyear, Michelin and Firestone.
about in the industry, however, say they realize the importance of getting antiquated tires off the road.
Joe Kovac, president of Florida-based retail store Kovac Automotive, thinks an expiration date, rather than a born-on date, should be set on tires.
"I also agree that after six years the tire shouldn't be in succession the road," he says. "In my opinion, any tire that's going to be ridden forward the highway needs to have expiration dates."
Wholesalers say it is too early to recount how this issue would affect their business.
"There are with equal reason many variables that we'd have to take into consideration," says Ros Kogel Jr director of marketing at Tire Wholesalers in Michigan. "I think it's too early to draw any conclusions."
Although the issue would likely have an impact forward inventory, its extent is unknown. Kogel says that in a main warehouse, there is an average of five to seven inventory diverts a year.
For dealers, however, there is a downside. Born-on dating would likely bring immense compressing to destroy tires after the date has passed.
"That means when I commit to memory a truckload of 400 tires at my back door, I ne to be aware of the production date forward every one of them," he says. "I could get by heart one and a half-year-old tires from the manufacturer."