Fixed Ops Journal - August 2016 - (Page 12)

FIXED OPS JOURNAL RICHARD WOOD Mark Mathews, service director of Tansky Sawmill Toyota in Ohio, says tire sales can encourage customers to return for repair work. TIRE TRACKS ■ After failing to compete, dealers sell record share of replacements RICHARD TRUETT rtruett@crain.com N ot long ago, the share of the replacement tire market held by new-vehicle dealerships was near zero. Dealers seemed to concede the space to independent shops. That has changed, big time. Last year, new-vehicle dealerships accounted for a record 8 percent of the $29.2 billion U.S. market in replacement tires for cars and light trucks, up from 1 percent in 2000, according to the trade publication Modern Tire Dealer. Rising new-car sales and efforts by automakers and distributors have helped fuel the surge. And now, franchised dealers are seeking to build on the gains by betting that PAGE 12 AUGUST 2016 cutting-edge service lane technology will spur even more sales. Bob Ulrich, editor of Modern Tire Dealer, predicts the share could rise to 15 percent in coming years. "One-half percent [of annual market share growth] is significant in our industry," Ulrich said. It's a "huge red flag" to retail competitors, he added. Scott Mueller helped set the trend. He is CEO of Dealer Tire, a Cleveland distributor that sells replacement tires to new-vehicle dealerships and helps dealers with merchandising and marketing. Mueller formed Dealer Tire in 1999, a year after the tire shop founded by his grandfa- Gaining traction From 2000 through 2015, new-vehicle dealerships' share of the U.S. replacement tire market rose from 1% to 8%. Independent tire dealers continue to dominate. DISTRIBUTION CHANNEL Independent tire dealers Mass merchandisers Warehouse clubs Franchised auto dealerships Tire company-owned stores Miscellaneous outlets Source: Modern Tire Dealer SEE TIRES, NEXT PAGE 2015 MARKET SHARE 60.5% 13.0 9.0 8.0 7.5 2.0

Table of Contents for the Digital Edition of Fixed Ops Journal - August 2016

Fixed Ops Journal - August 2016
Contents
Editor’s Letter
Service Counter
Legal Lane
Treading confidently
'Tis the season
Profit Builder
Valet service
Richard Truett
OEConnection
Changing oil:
Photo story
Trade-off
Toyota way
Feedback
Lone star
Airbag recall
Forging links
Top 50
5 Minutes With
Shop Talk
Fixed in Time

Fixed Ops Journal - August 2016