Happy 50th anniversary (to us!)

Facts section: then and now
Happy 50th
anniversary
(to us!)
I
Modern Tire Dealer’s
Facts Issue celebrates the
past and present
n 1966, Modern Tire Dealer published its first “Facts Issue.”
The highlight of our five-page Facts Section may have
been the history of tire shipments, courtesy of the Rubber
Manufacturers Assocation.
Fifty years later, our 2016 Facts Issue has 13 pages of 2015
industry statistics covering everything from tire shipments to
North American plant capacities. The highlight, however, is
our market share data, which breaks down replacement and
original equipment consumer tire brand shares (pages 52-56)
and truck tire brand share (page 58). We even assign shares
to the various distribution channels (page 66).
Because this is our golden anniversary issue, we have
added a special nine-page historical section that follows this
introduction. And to tie the past and the present together, we
lead it off with a tribute to renowned cartoonist George Booth,
who added humor and insight to our articles throughout four
decades. In honor of the occasion, we asked him to draw the
cover of this issue (I particularly like the chicken peeking out
of the stack of tires). You will see samples of his MTD work
not only in the special section, but also throughout our issue.
Why? Because many of his cartoons are as relevant today as
they were when they were first drawn.
The importance of our annual issue cannot be overstated. As
former Editor Lloyd Stoyer said in our silver anniversary issue,
“in a period of rapid transformation, of globalization, acquisition and intense competition, the statistics and comparisons
in our ‘Facts’ section take on even more significance.” Looks
like nothing ever changes. — Bob Ulrich
2015 U.S. REPLACEMENT TIRE SALES
(a $37.7 billion industry)
In 2014, U.S. replacement tire sales totaled $38.3 billion.
Passenger
$24.4 billion
Truck
$6.4 billion
Light Truck
$4.8 billion
OTR
$1.6 billion
Farm
$500 million
All figures in the special 23-page Facts Section are
Modern Tire Dealer figures unless otherwise noted.
30
MTD January 2016
Facts section: shipments
Tire shipments
The Great Depression
World War II
Korean
Conflict
The ups and downs
from 1929 to 2015
D
emand for replacement tires in the U.S. was steady throughout
most of 2015 (last February doesn’t count). However, retailers
and wholesalers entered the year with healthy inventories,
the result of trying to bypass the tariffs being levied on Chinese
consumer tires.
Add to that an abnormally mild winter, and a 1% decrease in replacement passenger tire sales year-over-year is not unexpected (see
Chart 1). In contrast, strong SUV and CUV sales were a big reason
original equipment shipments rose nearly 4%.
The 48.1 million OE passenger tire shipments were the most since
2006. The Rubber Manufacturers Association forecasts OE shipments
will reach 50 million units.
Light truck tire shipments were flat at the replacement level and
down at the OE level.
“OE shipments should increase 1% to 2% in 2016, with light truck
tire volumes outpacing passenger due to low fuel costs causing a mix
shift to the former,” says Nick Mitchell, senior vice president of research
for Northcoast Research Holdings LLC. “Replacement volumes will
likely increase 1% to 3%, with the light truck segment outperforming,
but only by a more modest
margin.”
Chart 1
Service trailer (ST) tires are
U.S. UNITS SHIPPED
not included in either Mod2011-2015 (in millions; imports
ern Tire Dealer’s or the RMA’s
included)
domestic passenger or light
PASSENGER TIRES
truck tire shipment numbers.
They also are exempt from the
Year
Replacement
OE
tariffs on Chinese tires.
2015
204.5
48.1
An estimated 2.4 million
2014
206.6
46.3
replacement ST tires are
shipped annually (about 12
2013
201.6
44.0
million trailers are registered).
2012
192.0
40.5
ST pricing generally ranges
2011
196.5
36.0
from around $18 (Chinese
imports) to $130 (Goodyear),
LIGHT TRUCK (LT) TIRES
and sizes from 13 inches to 16
2015
29.0
4.6
inches.
2014
28.8
4.8
The market is relatively
steady,
with 800,000 new trail2013
28.3
4.4
ers coming into the market
2012
28.3
4.2
every year. However, since
2011
28.6
4.1
RVs are expected to increase
in number over at least the next
MEDIUM/HEAVY
year, the number of trailers
TRUCK TIRES
that go with RVs will probably
2015
18.0
6.3
increase in number.
2014
17.3
5.8
The manufacturer’s warranty
seems to be about six years
2013
15.7
5.0
(there is no mileage warranty),
2012
16.0
5.3
which matches the average
2011
17.0
4.9
replacement cycle of an ST tire.
46
1929
1932
1938
1942
1946
1952
TOTAL
Historical shipment trends
Replacement and OE passenger tire shipment trends over the
last 85 years differ because the factors on which they are based
differ. Replacement shipments are more cumulative because
our population continues to grow, resulting in more vehicle
registrations. In 2013, there were 256 million registered motor vehicles. More than half of them were automobiles — not
including pickup trucks. OE tire shipments, in contrast, are
based solely on yearly vehicle production.
With that said, historical events often affect trending for
both in the same way (see Chart 2). During World War II,
MTD January 2016
Chart 2
300
U.S. PASSENGER TIRE SHIPMENTS 1929-2015
Arab Oil
Embargo
The Great Recession
Black
Monday
250
200
150
100
50
1970
1973
1981
REPLACEMENT
production of all tires fell dramatically because of a severe rubber
shortage. The U.S. government rationed tires to ensure there was
enough rubber for military and vital civilian purposes. The natural
rubber shortage did have a positive lasting effect on our industry:
It accelerated efforts to develop synthetic rubber.
When external forces raise demand for rubber, as they did during
the Korean Conflict in the early 1950s and the Arab Oil Embargo
in 1973-74, tire prices naturally rise, which can lead to a decrease
in shipments. The oil embargo also fed into a recession which
lasted into 1975.
Trending seems to indicate the tire industry, especially the
www.moderntiredealer.com
2000
1987
2008
2015
0
OE
replacement segment, weathers recessions well. At the height of
the Great Recession in 2009, replacement passenger tire shipments
dropped only 11%. And while vehicle owners held off buying
tires, they still needed to keep up with automotive services. At the
same time, new vehicle sales fell dramatically, and OE shipments
decreased 51% as a result.
Both segments were affected negatively by the 1979 oil crisis,
which was caused by decreased oil output in the wake of the Iranian
Revolution. During the peak of the recession that followed, the
nationwide unemployment rate was 10.8%, the highest since the
Great Depression.
47
Facts section: shipments
Chart 4
Chinese tire tariffs, then and now
From Sept. 26, 2009, to Sept. 26, 2012, consumer tire
imports from China were saddled with extraordinary tariffs.
Shipments from China decreased considerably (see Chart 3)
and pricing on low-cost radials increased dramatically.
New tire tariffs, retroactively applied more than a year ago
and significantly higher than 35%, are having an even greater
effect on shipments from China. Pricing, however, has not
been affected this time around.
China accounts for close to 44% of the consumer tires
produced globally, says David Shaw, CEO and head of research
for Tire Industry Research. That will steadily increase to more
than 46% in 2018. ■
WORLD LEADERS IN NEW TIRE SALES
(fiscal year 2015; in billions of U.S. dollars1)
Tire company
2015
2014
Bridgestone Corp.
$27.1
$29.2
Groupe Michelin
$22.0
$24.4
Goodyear Tire & Rubber Co.
$16.0
$17.6
Continental AG
$11.4
$13.0
Pirelli & Cie SpA
$7.0
$8.0
Sumitomo Rubber Industries Ltd.
$6.1
$6.9
Hankook Tire Co.
$5.7
$6.4
$4.2
$4.7
Cheng Shin Rubber Ind. Co. Ltd.
$3.8
$4.2
Cooper Tire & Rubber Co.
$2.9
$3.4
Toyo Tire & Rubber Co. Ltd.
$2.6
$2.9
Kumho Tire Co. Inc.
$2.3
$3.2
Yokohama Rubber Co.
3
Chart 3
U.S. CONSUMER TIRE IMPORTS
FROM CHINA
(in millions of units)
2
Year
Units
Yr./yr. change
2015
30.2
-50.0%
2014
60.5
+17.9%
2013
51.3
+57.8%
Tire company
2012
32.5
+25.0%
U.S./CANADIAN LEADERS
IN NEW TIRE SALES
(fiscal year 2015; in billions of U.S. dollars1)
2015
2014
Bridgestone Americas Inc.
$8.1
$8.8
2011
26.0
- 16.1%
Goodyear Tire & Rubber Co.
$7.2
$7.4
2010
31.0
- 27.9%
Michelin North America Inc.
$6.6
$7.3
2009
43.0
-7.5%
Continental Tire the Americs LLC
$2.6
$2.9
2008
46.5
+14.8%
Cooper Tire & Rubber Co.
$2.2
$2.5
2007
40.5
+50.0%
Toyo Tire Holdings of America Inc.
$1.2
$1.4
2006
27.0
+28.0%
Hankook Tire America Corp.
$1.2
$1.3
2005
21.0
+44.0%
Yokohama Tire Corp.
$1.2
$1.3
2004
14.6
+36.0%
Sumitomo Rubber Industries Ltd.
$.8
$.9
2003
10.7
+32.0%
Pirelli Tire North America Inc.
$.56
$.64
Kumho Tire U.S.A. Inc.
$.5
$.7
Source: U.S. government, MTD figures
From July 1972: Akron tire dealers offered free radial tire tryouts to customers. Radials represented only 7% of the replacement passenger tire market in 1972.
48
2
4
1 The average exchange rates
between foreign currencies and
the U.S. dollar differed from 2014
to 2015 as follows: European euro,
up 19.5%; Japanese yen, up 14.4%;
Korean won, up 7.5%; Taiwan dollar,
up 4.6%.
2 Yokohama Rubber Co. and
Kumho Tire Co. Ltd. signed a
Memorandum of Understanding
on Nov. 29, 2013. As part of the
strategic alliance, the companies
will share resources to “jointly
pursue research and development
of tire related technologies to
compete with the Big 3,” according
to Kumho.
3 The Cheng Shin Rubber USA Inc.
subsidiary does business as Maxxis
International.
4 Sumitomo Corp. of America is run
independently of Sumitomo Rubber Industries.
MTD January 2016
Facts section: market share
Tire brand market share
Goodyear remains a strong No. 1
F
or as long as Modern Tire Dealer has been tracking
domestic passenger tire brand share, the Goodyear
brand has been number one by a wide margin. When
we added a light truck tire brand share chart, Goodyear again
was the clear leader.
The percentages fluctuate a little from time to time, but
in general they have remained steady. In 1972, for example,
the Goodyear brand accounted for 13% of the replacement
passenger tire market. In 2015, it again came in at 13% (see
Chart 6). What has changed are the other brand positions.
Second-place Firestone held a 9.5% share in 1972; it climbed
to 10.5% in 1999, but following the 6.5 million Firestone tire
recall in 2000, it dropped to 7.5%.
Forty-three years ago, Sears was third on the list with 8.5%
of the market. Atlas was fourth at 4.5%. Neither brand has as
much as 1% of the market today. Brands like Wards, Penney’s,
Armstrong, Gulf, K-mart, Mobil and Western Auto are no more.
The Michelin brand represented 1.5% of the market then.
It is now the second most popular passenger tire brand with
a share of 9.5%. Bridgestone did not even account for 0.5% of
the market in 1972; today, it is third with an 8% share.
However, as a company, Bridgestone Americas Inc. accounts
for the greatest share of not only the replacement passenger
tire market, but also the consumer (passenger and light truck)
tire market. Its three main brands represent 38.1 million
tires, ahead of Michelin North America Inc. (37.9 million)
and Goodyear Tire & Rubber Co. (36.2 million). The three
companies combined account for 48% of the replacement
consumer tire market.
“Domestically, we expect all three will remain extremely
disciplined on the pricing front, and we anticipate additional
investments will be made on the e-commerce front,” says Nick
Mitchell, senior vice president of research for Northcoast
Research Holdings LLC. “We anticipate Bridgestone will
Chart 5
CONSUMER TIRE MARKET SHARE
BREAKDOWN BY BRAND CATEGORY
Chart 6
2015 U.S. REPLACEMENT CONSUMER TIRE
BRAND SHARES
PASSENGER TIRES
(based on 204.5 million
units)
Brand
Goodyear
% of total
13.0%
LIGHT TRUCK TIRES
(based on 29.0 million
units)
Brand
Goodyear
% of total
12.0%
Michelin
9.5%
BFGoodrich
8.5%
Bridgestone
8.0%
Bridgestone
7.5%
Firestone
7.5%
Michelin
7.5%
Cooper
5.5%
Firestone
7.0%
BFGoodrich
5.0%
Cooper
6.5%
Hankook
4.0%
General
5.0%
Continental
4.0%
Hankook
4.0%
Yokohama
4.0%
Multi-Mile
4.0%
Falken
3.5%
Toyo
4.0%
General
3.0%
Yokohama
4.0%
Pirelli
3.0%
Kumho
2.5%
Toyo
3.0%
Pirelli
2.5%
Kumho
2.5%
Dunlop
2.0%
Multi-Mile
2.5%
Hercules
2.0%
Nexen
2.5%
Mastercraft
2.0%
Primewell
2.0%
Uniroyal
2.0%
Sumitomo
2.0%
Continental
1.5%
Dunlop
1.5%
Cordovan
1.5%
GT Radial
1.5%
Kelly
1.5%
Hercules
1.5%
Maxxis
1.5%
Mastercraft
1.5%
Nexen
1.5%
Nitto
1.5%
Big O
1.0%
Uniroyal
1.5%
Delta
1.0%
Big O
1.0%
Eldorado
1.0%
Cordovan
1.0%
Falken
1.0%
Imports 19.3%
Delta
1.0%
GT Radial
1.0%
Fuzion
1.0%
Others
5.5%
Private 9.0%
Kelly
1.0%
Sailun
1.0%
Sigma
1.0%
Others
3.0%
(based on 233.5 million units)
Associate 7.0%
Major 64.7%
Brands must have at least 1% of the passenger or light
truck tire market to be listed at 1%.
52
MTD January 2016
Facts section: market share
continue to get more aggressive with its retail assets, including
sharper prices at its Firestone Complete Auto Care centers.
We anticipate Goodyear will improve fills rates by importing
more product from its foreign plants.
“Overall, we expect the group to post a low-single digit
increase in replacement volumes, led by strong trends in the
HVA (high value-added) category.”
In 2015, Tier 1 and Tier 2 brands gained market share at the
expense of value brands. Tier 1 tires are defined as the major
tire companies’ premium brands. Tier 2 tires are defined as
upper- and middle-market brands.
Original equipment market
While domestic replacement consumer tire shipments
were down by 2 million units, original equipment shipments
in the U.S. were up 3.1% (passenger tire units were up 3.8%).
Domestic light vehicle production trended the same way: It
increased 3.4%, to 12.1 million vehicles, in 2015 vs. 2014.
LMC Automotive Ltd. forecasts a 2.7% increase in North
American production in 2016, with additional increases every
year through at least 2022. LMC cites added capacity (a new
Volvo plant in the U.S., new Toyota and Volkswagen plants in
Mexico) as one of the reasons for its positive outlook.
Chart 7
2015 ORIGINAL EQUIPMENT BRAND SHARES
(U.S./Canadian light vehicles, excluding imports)
BMW
CHRYSLER/FIAT (FCA)
Goodyear
53%
Pirelli
30%
Continental
35%
Michelin
15%
Bridgestone
24%
Michelin
30%
Firestone
7%
Continental
22%
Goodyear
15%
BFGoodrich
5%
Dunlop
20%
BFGoodrich
8%
Continental
5%
Michelin
Toyo
6%
Bridgestone
4%
Bridgestone
3%
Pirelli
3%
Michelin
42%
Dunlop
2%
General
2%
Goodyear
32%
General
Kumho
2%
Bridgestone
17%
Nexen
2%
Continental
3%
Bridgestone
67%
2%
Firestone
3%
Continental
30%
Hankook
2%
Goodyear
Yokohama
1%
Yokohama
FORD
4%
HONDA
1%
SUBARU
3%
TESLA
Michelin
23%
Goodyear
21%
Michelin
49%
Continental
19%
Hankook
39%
Goodyear
49%
BFGoodrich
10%
Kumho
32%
Pirelli
Pirelli
9%
Nexen
15%
General
8%
Continental
Hankook
7%
Bridgestone
2%
Continental
Toyo
1%
GENERAL MOTORS
54
NISSAN
HYUNDAI / KIA
14%
2%
TOYOTA
Bridgestone
33%
Michelin
24%
29%
Goodyear
13%
Pirelli
26%
BFGoodrich
8%
Dunlop
15%
Dunlop
7%
MERCEDES-BENZ
Goodyear
39%
Bridgestone
11%
Firestone
4%
Michelin
20%
Michelin
10%
Toyo
4%
Bridgestone
17%
Goodyear
9%
General
3%
Firestone
13%
Continental
2%
Yokohama
2%
MITSUBISHI
Continental
6%
Nexen
50%
Hankook
3%
Toyo
50%
General
2%
VOLKSWAGEN
Continental
53%
Hankook
32%
Bridgestone
15%
MTD January 2016
Facts section: market share
Chart 9
U.S./CANADIAN OE
CONSUMER
TIRE BRAND SHARES
(excluding imported vehicles)
Brand
2015
2014
Goodyear
26.1%
25.6%
Michelin
20.8%
20.7%
Bridgestone
12.7%
12.7%
Continental
11.2%
11.0%
5.4%
5.1%
Hankook
Hankook (Dynapro HT), Bridgestone Americas (Firestone Destination LE2) and Goodyear (Wrangler All-Terrain Adventure) are supplying select models of the 2016 Toyota Tacoma with tires.
General Motors Corp. remained the vehicle market share leader, but it
no longer dominates its domestic or transplanted foreign competitors. In
2005, GM makes and models represented 31% of the market, followed
by Ford Motor Co. with 22.2%. DaimlerChrysler, now FCA USA LLC,
was third at 17.3%, Toyota Motor Sales U.S.A. Inc. was fourth at 10.9%,
and American Honda Motor Co. was fifth at 9.3%.
In 2015, the same five players remain in the same order. However,
the gap between them has narrowed.
4.6%
4.8%
BFGoodrich
4.2%
4.3%
Pirelli
3.7%
3.5%
Kumho
3.0%
2.9%
General
2.6%
2.8%
Dunlop
1.8%
2.1%
Nexen
1.8%
1.6%
Toyo
1.5%
1.4%
Others
0.6%
1.1%
Chart 10
2015 BRANDS LISTED
BY THE MTD 100
U.S./Canadian light vehicle production market share
GM 18.7% Ford 18.4%Chrysler 14.7%
Toyota 13.4% Honda 11.6% Hyundai/Kia8.7%
Nissan 6.5% BMW 2.8%Mercedes 5.2%
(Total outlets: 5,804)
Rank by No. of
dealers
More than one in four light vehicles, based on U.S. and Canadian
production, rolled off the assembly lines with either Goodyear or Dunlop
tires on them (see Chart 9). Michelin and BFGoodrich combined for
25% of the OE brand market, followed by Bridgestone and Firestone
with 17.3% — roughly one in every six vehicles.
Continental Tire the Americas LLC, with its Continental and General
brands, accounted for nearly 14% of the market. ■
Chart 8
FORD OE MARKET SHARE:
FIVE BRANDS, SIX DECADES
Dealers/
outlets
1. Michelin
81/4,752
2. BFGoodrich
72/4,448
3. Goodyear
68/4,507
4. Continental
63/3,807
5. Bridgestone
60/4,263
6. Firestone
53/2,689
7. Yokohama
52/3,803
8. General
50/3,317
9. Cooper
46/3,467
In 1968, five brands accounted for 100% of Ford Motor Co.’s original equipment market share: Firestone (47%), Goodyear (27%),
BFGoodrich (12%), General (7%) and Uniroyal (7%). In 2015, 10
brands supplied Ford with OE tires.
10. Hankook
43/3,606
10. Uniroyal
43/2,190
Brand
1975
1985
1995
12. Dunlop
42/3,724
2005
2015
13. Kelly
41/2,091
Goodyear
26.0%
22.5%
28.0%
27.0%
21.0%
14. Pirelli
33/3,900
Firestone
39.0%
39.5%
30.0%
0.0%
0.0%
15. Toyo
29/2,257
Uniroyal
10.0%
6.0%
4.0%
1.0%
0.0%
16. Kumho
27/2,551
BFGoodrich
10.0%
0.0%
0.5%
5.0%
10.0%
17. Falken
26/3,166
General
10.0%
10.5%
16.5%
10.0%
8.0%
18. Fuzion
21/825
63.0%
19. Nexen
20/1,452
20. Nitto
17/2,119
Others
5.0%
21.5%
21.0%
Goodyear was the OE market leader in 1968 at 31%.
56
Firestone
57.0%
MTD January 2016
Facts section: commercial
Commercial tire market
New truck tires were plentiful, but not as profitable
D
emand for new truck tires was high in 2015, and independent tire dealers
delivered. Compared to 2014, replacement shipments were up 4%, to
18 million units. In addition, imports from China increased 14.6%, to
a record high of 9.4 million units (see Chart 12).
Unfortunately, profitability suffered because of those very imports. The
price of a new Chinese truck tire kept dropping as the year went on. Softening
demand in the second half of 2015 only exacerbated the problem. How bad did
it get? Even with the Federal Excise Tax included, new Chinese truck tires were
selling for less than the cost to retread a tire. Retreaders were asking for their
own tariff treatment.
Overall, the average cost of a new truck tire dropped nearly 7%, from $381.50
to $355.55.
According to David Shaw, CEO and head of research for Tire Industry Research,
China has the capacity to produce 150 million truck and bus tires annually.
“There is capacity in China to make every single truck tire that the world
needs,” he says.
Chart 12
U.S. TRUCK TIRE IMPORTS
FROM CHINA
(in millions of units)
Year
Units
Yr./yr. change
2015
9.4
+14.6%
2014
8.2
+30.1%
2013
6.3
+0.1%
2012
6.3
+13.5%
2011
5.5
+37.5%
Chart 13
Chart 11
2000-2015 TRUCK TIRE
REPLACEMENT MARKET BREAKDOWN
(Before 2009, the number of retreaded truck tires produced last topped new
truck tire shipments in 2004.)
20
15
10
5
0
1997 2000 2003 2006 2009 2012 2015
Retreaded truck tires
(Shipments in millions)
New truck tires
(Shipments in millions)
In 2015, the average price of a retreaded truck tire was $232.43. The average price of a
new truck tire was $355.55.
58
2015 U.S. REPLACEMENT
MEDIUM/HEAVY TRUCK
TIRE BRAND SHARES
(based on 18.0 million units)
Bridgestone
17.5%
Michelin
17.5%
Goodyear
12.0%
Yokohama
9.5%
Firestone
8.0%
Continental
5.0%
Double Coin
4.0%
Hankook
3.5%
General
3.0%
Hercules
2.5%
Toyo
2.5%
BFGoodrich
2.0%
Dynatrac
2.0%
Roadmaster
2.0%
Sailun
2.0%
Dunlop
1.5%
Gladiator
1.0%
Kelly
1.0%
Kumho
1.0%
Sumitomo
1.0%
Others
5.0%
Brands must have at least 1% of
the market to be listed at 1%.
MTD January 2016
Facts section: commercial
Although too much of the capacity is bias-ply, that is changing,
he said. China also is adding truck tire capacity.
Retreaded truck tire shipments were down nearly 4%, but
still a healthy 48 million units. They accounted for $3.4 billion
in sales compared to $3.6 billion last year.
Despite the stiff competition from China, retread prices
decreased only 2.1%, from an average of $237.48 to $232.43.
The drop in the number of retreaded truck tires almost
wiped out the gain in new truck tire shipments. Combined,
they totaled 32.8 million units versus 32.7 million units the
previous year (see Chart 11 on page 58).
From 1998 through 2003, the number of retreaded truck
tires outpaced new truck tire shipments every year. In the last
12 years, truck tires have led the way every year but one: 2009.
Farm tire market share
The Firestone brand is the domestic market leader when it
comes to radial rear farm tires. It accounts for 40% of original
equipment shipments in the U.S. (see Chart 15) and 32.5%
of replacement shipments.
At the OE level, the Goodyear brand, produced and marketed
by Titan Tire Corp., is second with 33% of the market, followed
by Michelin at 14%. At the replacement level, BKT has 20.5%
of the market, followed by Michelin at 17.5%.
Titan leads the way with 35% of the OE bias rear farm tire
market. BKT is the replacement segment leader at 40%. ■
Chart 15
2015 U.S. OE FARM TIRE
BRAND SHARES
RADIAL REAR
(based on 210,000 units)
Chart 14
2015 U.S. MARKET SHARE, RETREADED TRUCK TIRES
(based on 14.8 million units)
Bridgestone
(Bandag) 42.5%
Goodyear 24.0%
Michelin 24.0%
Marangoni 5.0%
Firestone
40.0%
Goodyear
33.0%
Michelin
14.0%
Titan
5.0%
BKT
3.0%
Trelleborg
2.0%
Mitas
1.0%
Others
2.0%
Total
100.0%
BIAS REAR
(based on 326,000 units)
Continental 2.0%
Titan
35.0%
Firestone
30.0%
Others 2.5%
Goodyear
25.0%
Alliance
6.0%
BKT
1.0%
Trelleborg
1.0%
Others
2.0%
Total
100.0%
SMALL FARM
(based on 350,000 units)
From April 1974: Tire shows have featured retreaded tire “beauty contests” for
years. The latest was at the 2015 North American Tire & Retread Expo.
60
Goodyear
32.5%
Titan
20.5%
Firestone
15.0%
Carlisle
12.0%
BKT
7.0%
Alliance
6.5%
American Farmer
2.0%
Trelleborg
1.5%
Mitas
1.0%
Others
2.0%
Total
100.0%
MTD January 2016
Facts section: prices and sizes
Tire pricing and sizes
MTD breaks down 50 years of popularity
I
n 1966, when 13-, 14- and 15-inch sizes were commonplace at the replacement level, two of the most popular
tire sizes were 6.95x14 and 7.35x14. The 6.95x14 was
original equipment on vehicles like the Chevy Chevelle, Ford
Fairlane and the Slant 6 Pontiac Tempest; the 7.35x14 was
standard on the Dodge Coronet, Plymouth Belvedere and
the V-8 Tempest.
The tires cost an average of $31.53 and $32.70, respectively.
Were those prices high or low in their era compared to today’s
pricing? To find out, we first took the inflation rate over the
last 50 years into consideration.
1966 pricing
$31.53 (6.95x14)
$32.70 (7.35x14) 2015 pricing
$230.96
$239.53
Then we converted those bias-ply sizes to their modern-day
1920 tire pricing
Goodyear Tire & Rubber Co. introduced the first allseason tire, the Tiempo, in 1977. However, it was advertising “all-weather tread casings” in 1920.
Its size 30x3 clincher-style fabric all-weather tire
cost $19.70 without the tube in 1920. Taking the inflation rate into consideration, that same tire would cost
$233.78 today.
radial, 60-series counterparts, courtesy of “The Old Timers
Tire Guide” from Tire Guides Inc. (www.tireguides.com):
6.95x14 = 215/60R14
7.35x14 = 235/60R14
The average advertised price for a 215/60R14 tire in 2015
was comparatively more than $100 lower — $124.04, according
to Tire Intelligence LLC. The average price for a 235/60R14
tire was $122.26.
Chart 16
2015 AVERAGE ADVERTISED
TIRE PRICES
(in the U.S.)
Major brand
Low-cost
Overall
205/55R16
Size
$136.17
$77.02
$123.57
215/55R17
$152.84
$89.30
$137.41
215/60R16
$126.43
$78.23
$112.82
235/75R15
$125.03
$90.66
$113.53
275/65R18
$216.08
$146.62
$202.67
LT225/75R16
$181.00
$122.18
$165.50
LT245/75R16
$193.85
$134.72
$179.33
LT245/75R17
$210.60
$156.42
$199.09
31x10.50R15
$173.84
$130.56
$164.05
Source: Tire Intelligence LLC, www.tire-intelligence.com
From March 1974: Dealers believed the third round of price hikes in four months was a reflection of the U.S. economy.
62
MTD January 2016
Facts section: prices and sizes
Chart 17
MOST POPULAR DOMESTIC OE PASSENGER
AND LT TIRE SIZES
2014 OE P-metric/metric
2014 OE light truck (LT)
Size
% of total
Size
% of total
P215/55R17
5.0%
LT245/75R17
21.7%
P215/60R16
3.4%
LT245/75R16
12.0%
215/55R17
2.7%
LT225/75R16
11.4%
P265/70R17
2.7%
LT265/70R18
10.3%
2013 OE P-metric/metric
2013 OE light truck (LT)
Size
% of total
Size
% of total
P215/55R17
6.1%
LT245/75R17
21.9%
P265/70R17
4.0%
LT245/75R16
14.0%
P275/55R20
3.2%
LT225/75R16
11.3%
P275/65R18
3.1%
LT265/70R17
8.9%
2012 OE P-metric/metric
2012 OE light truck (LT)
Size
% of total
Size
% of total
P215/55R17
6.1%
LT245/75R17
22.1%
P265/70R17
4.4%
LT245/75R16
14.7%
P215/60R16
3.8%
LT225/75R16
11.1%
P275/65R18
3.4%
LT265/70R18
8.1%
Source for Charts 16-18: Rubber Manufacturers Association
64
The most popular sizes
in 2015 are...
Chart 18
TOP U.S. PASSENGER
TIRE SIZES, 2015
For the fourth year in a
Replacement
OE
row, size P215/55R17 is
the most popular OE size.
215/55R17
205/55R16
That may continue over the
225/65R17
215/60R16
next three or four years;
215/60R16
195/65R13
it has multiple 2016 OE
fitments (Chrysler 300,
Fiat 500X, Hyundai Sonata, Honda Accord and HR-V) and
strong past fitments (Volkswagen Beetle and Passat, Kia Soul,
Honda Accord, and Chevy Cruze and Volt).
It also ranks as a popular replacement size, (ninth in 2014)
and is expected to rise up the Top 10 list as the OE tires need
to be replaced.
Advertised pricing breakdown, 215/55R17
Speed
Major
LCR
Difference Overall
V-rated$156.46 $92.10
70.0% $141.24
H-rated$151.02 $99.70
51.4% $144.96
T-rated$139.04 $105.74 31.5% $132.78
Source: Tire Intelligence LLC
The top 10 OE passenger tire sizes represented 28.9% of the
market in 2014, compared to 36.3% in 2011, according to the
Rubber Manufacturers Association. The top 10 replacement
sizes accounted for 23.2% of the shipments in 2014, compared
to 22.5% in each of the previous three years. ■
Quik-Link: 800-687-1557 ext. 11131
MTD January 2016
Facts section: distribution/inventory
Distribution channels
Without wholesalers, no dealer can handle 600 sizes
T
here were 348 radial passenger tire sizes in the
Chart 19
U.S. in 2015, according to the Tire & Rim As- NEW P-METRIC AND LT TIRE SIZES/SKUS IN 2016
sociation. That doesn’t take into account all of P215/45R16 LL
P225/55R19 XL
P245/50R20 XL
the European metric sizes or speed ratings, or even the
P295/25R19 SL
P235/40R19 SL
three-peak mountain snowflake symbol. So potential P305/35R20 SL
SKUs could be at least 10 times that.
35x11.50R18LT LRE 35x11.50R20LT LRE 37x11.50R20LT LRE
Add in 248 radial and bias LT sizes, and the need 38x13.50R22LT LRE LT215/80R16 LRD
LT285/65R17 LRE
for wholesale tire dealers becomes clear. The average
LT255/70R16 LRE
LT305/40R22 LRE/F
independent tire dealer buys from five wholesale dis- LT225/65R17 LRD
tributors. The largest in North America is American Tire Source: Tire & Rim Association
Distributors Inc., which has 138 servicing distribution
centers (115 in the U.S. and 23 in Canada)
Chart 20
and three mixing centers.
CONSUMER
TIRE
DISTRIBUTION
CHANNEL MARKET SHARE
Here is the breakdown of passenger
(based on retail sales)
tire sizes by rim diameter, ranging from
P145/80R12 to P275/25R26:
39.0%
12-inch: 1 15-inch: 56 18-inch: 65 21-inch: 2 24-inch: 6 13-inch:13
16-inch: 57 19-inch: 25 22-inch: 7 26-inch: 1
14-inch: 26
17-inch: 58
20-inch: 29
23-inch: 2
The 15- through 18-inch sizes account
for nearly 68% of all passenger tire sizes.
Radial light truck tire sizes range from
LT175/75R14 to LT335/35R26. There are
also three 85-series sizes. Radials account
for 95% of all LT sizes; that includes 68
flotation sizes.
There was no size attrition in the industry
last year, so the 15 new consumer sizes
you might see in your dealership this year
(see Chart 19) brings the total number of
sizes to 611.
Tire dealers dominate distribution
Independent
tire dealers
29.0%
Mass merchandisers
13.0%
0.0%
Warehouse clubs
9.0%
2.0%
Auto dealerships
8.0%
10.0%
Tire companyowned stores
7.5%
20.0%
Miscellaneous
outlets
Had Pep Boys-Manny, Moe & Jack been
purchased by Bridgestone Americas Inc.,
tire company-owned stores would have increased their tire
distribution market share by two percentage points at the
expense of mass merchandisers. Instead, the percentages
remained the same as last year.
With 60.5% of the market, independent tire dealers sell
more consumer tires to the end user than any other distribution channel.
It has been that way for a long time, although the gap between
first and second place wasn’t as dramatic in 1975, when tire
dealers accounted for 39% of market (see Chart 20). In 1922,
when tire dealers were almost the only game in town, their
market share was 98%!
When you take wholesaling into account, independent tire
66
60.5%
2.0%
0
10
20
30
1976 percentage
40
50
60
70
80
2015 percentage
dealers have an even greater share, because they are the main
suppliers to franchised auto dealers (think Dealer Tire LLC),
muffler shops and service stations.
Consumer tire distribution
channel market share
Initial channel
Independent dealers Co.-owned stores
Miscellaneous
2015
1995
78.0% 68.5%
8.0% 9.5%
14.0% 22.0%
“Miscellaneous” for the chart above includes mass merchandisers, warehouse clubs, car dealers, auto parts chains,
muffler shops and oil companies. ■
MTD January 2016
Facts section: plant capacities
Union has
lost some
leverage
Y
early tire capacity, not production, in North America
totaled 310.1 million tires at
59 plants as of Jan. 1, 2016. That’s up
0.7% compared to 2015, when capacity was 307.9 million tires. (The total
does not include race or aviation tires.)
In the United States, annual capacity
increased one-half percent, to 249.5
million units. That was a year-over-year
increase of 1.4 million tires. Canadian
tire plant capacity decreased 2.8%, to
25.3 million tires a year, the third year
in a row it has decreased. In contrast,
Mexican plant capacity increased 4.4%,
to 35.2 million tires annually; since
2002, it has increased 156%.
In the next two years, another three
consumer tire plants are expected to
come on-line in North America, which
will bring the total number to 62. Only
five years ago, there were 51 plants.
Hankook Tire America Corp. will
begin producing tires in Clarksville,
Tenn., later this year, while Goodyear
Tire & Rubber Co. will open its plant in
Plant closings
(2001-2011)
Since 2000, 10 consumer tire plants in
the U.S. have been closed.
Goodyear: Union City, Tenn. (2011),
Tyler, Texas (2008), and Huntsville,
Ala. (2003).
Continental: Charlotte, N.C. (2006),
and Mayfield, Ky. (2005).
Michelin: Opelika, Ala. (2009), and
Reno, Nev. (2002).
Bridgestone: Oklahoma City, Okla.
(2006).
Cooper Tire: Albany, Ga. (2009).
Pirelli: Hanford, Calif. (2001).
The plants produced an estimated
263,000 passenger and light truck tires
a day.
68
Chart 21
NORTH AMERICAN PLANT CAPACITIES as of Jan. 1, 2016 (in thousands of units)
PasLight
senger truck Truck Others
Plant location/
Nonper
per
per
per
Year constructed
union ISO QS
day:
day:
day:
day:
Bridgestone Americas Inc.
Aiken, S.C., 2013
x
0.0
0.0
0.0
0.03
La Vergne, Tenn., 1972
x
x
0.0
0.0
6.2
0.0
Warren County, Tenn., 1990
x
x
0.0
0.0
9.0
0.0
Bloomington, Ill., 1965
x
x
0.0
0.0
0.0
0.29
Des Moines, Iowa, 1945
x
x
0.0
0.0
0.0
4.57
Wilson City, N.C., 1974
x
x
x
32.0
2.0
0.0
0.0
Aiken, S.C., 1999
x
x
x
20.5
9.2
0.0
0.0
Joliette, Quebec, 1966
x
x
9.3
7.2
0.0
0.0
Monterrey, Mexico, 2007
x
8.0
0.0
0.0
0.0
Cuernavaca, Mexico, 1980
x
x
11.0
4.4
0.0
0.0
Total:
80.8
22.8
15.2
4.89
American Industrial Partners (formerly Carlisle Tire & Wheel Co.)
Jackson, Tenn., 2009
x
0.0
0.0
0.0
26.0
Clinton, Tenn. (Dico), 1974
x
x
0.0
0.0
0.0
15.0
Total:
0.0
0.0
0.0
41.0
Continental Tire the Americas LLC
Sumter, S.C., 2013
x
5.4
1.1
0.0
0.0
Mount Vernon, Ill., 1973
x
x
x
29.0
4.0
8.0
0.0
Total:
34.4
5.1
8.0
0.0
Cooper Tire & Rubber Co.
Findlay, Ohio, 1917
x
7.0
16.0
0.0
0.0
Texarkana, Ark., 1964
x
24.0
8.0
0.0
0.0
Tupelo, Miss., 1984/1960
x
x
42.0
0.0
0.0
0.0
Total:
73.0
24.0
0.0
0.0
Goodyear Tire & Rubber Co.
Danville, Va., 1966
x
x
0.0
0.0
11.0
2.0
Fayetteville, N.C., 1969
x
x
30.5
10.5
0.0
0.0
Gadsden, Ala., 1928
x
x
14.5
11.5
0.0
0.0
Lawton, Okla., 1978
x
x
x
64.0
0.0
0.0
0.0
Topeka, Kan., 1945
x
x
0.0
0.5
5.5
0.1
Medicine Hat, Alberta, 1960
x
x
0.0
0.0
0.0
13.0
Napanee, Ontario, 1990
x
x
x
19.0
0.0
0.0
0.0
Total:
128.0
22.5
16.5
15.1
GTY (General/Yokohama)
Mount Vernon, Ill., 1988
x
x
x
0.0
0.0
3.9
0.0
Hankook Tire America Corp.
Clarksville, Tenn., 2016
x
0.0
0.0
0.0
0.0
Kumho Tire Co. Inc.
Macon, Ga., 2015
x
0.01
0.0
0.0
0.0
Michelin North America Inc.
Ardmore, Okla., 1969
x
x
x
40.5
3.5
0.0
0.0
Dothan, Ala., 1979
x
x
1.1
4.1
0.0
0.0
Fort Wayne, Ind., 1961
21.0
9.5
0.0
0.0
Greenville, S.C., 1975
x
x
28.0
0.0
0.0
0.0
Greenville, S.C. (C3M), 1997
x
x
x
7.0
0.0
0.0
0.0
Greenville, S.C. (Tweel), 2014
x
0.0
0.0
0.0
0.07
Lexington, S.C., 1981
x
x
19.0
5.0
0.0
0.0
Lexington, S.C., 1998
x
x
0.0
0.0
0.0
0.1
Total
0.03
6.2
9.0
0.29
4.57
34.0
29.7
16.5
8.0
15.4
123.69
26.0
15.0
41.0
6.5
41.0
47.5
23.0
32.0
42.0
97.0
13.0
41.0
26.0
64.0
6.1
13.0
19.0
182.1
3.9
0.0
0.01
44.0
5.2
30.5
28.0
7.0
0.07
24.0
0.1
MTD January 2016
Passenger
per
day:
0.0
0.0
23.0
Light
truck
per
day:
0.0
0.0
7.0
Truck
per
day:
7.0
0.0
0.0
Plant location/
NonYear constructed
union ISO QS
Spartanburg, S.C., 1978
x
x
Starr, S.C., 2013
x
Tuscaloosa, Ala., 1945
x
Bridgewater, Nova
Scotia, Canada, 1973
x
x
11.0
3.0
0.0
New Glasgow, Nova
Scotia, 1971
x
x
2.0
0.0
0.0
Waterville, Nova Scotia, 1982
x
x
0.0
0.0
0.0
Queretaro, Mexico
x
6.0
0.0
0.0
Total:
158.6
32.1
7.0
Pirelli Tire North America Inc.
Rome, Ga., (MIRS), 2002
x
x
1.2
0.5
0.0
Guanajuato, Mexico, 2011
x
4.2
1.3
0.0
Total:
5.4
1.8
0.0
Specialty Tires of America Inc.
Indiana, Pa., 1915
x
0.92
0.18
0.05
Unicoi, Tenn., 1997
x
0.3
0.5
0.05
Total:
1.22
0.68
0.1
Sumitomo Rubber Noth America Inc.
Buffalo, N.Y., 1923
x
3.2
2.1
2.3
Titan Tire Corp.
Bryan, Ohio, 1967
x
x
0.0
0.0
0.0
Des Moines, Iowa, 1943
x
0.0
0.0
0.0
Freeport, Ill., 1964
x
x
0.0
0.0
0.0
Total:
0.0
0.0
0.0
Toyo Tire North America Manufacturing Inc.
White, Ga., 2005
x
x
8.8
8.8
0.0
Trelleborg Wheel Systems
Spartanburg, S.C., 2015
x
0.0
0.0
0.0
Charles City, Iowa, 2012
0.0
0.0
0.0
Total:
0.0
0.0
0.0
Yokohama Tire Corp.
West Point, Miss., 2015
x
x
x
0.0
0.0
1.0
Salem, Va., 1968
25.7
1.1
0.0
Total:
25.7
1.1
1.0
Grupo Carso/Euzkadi (Continental AG)
San Luis Potosi, Mexico
15.0
5.0
0.0
JK Tyre & Industries (formerly CIA Hulera Tornel)
Mexico City, Mexico
0.0
1.0
1.0
Tultitlan, Mexico
7.0
1.5
0.5
Tacuba, Mexico
8.0
2.5
0.0
Total:
15.0
5.0
1.5
Corporacion de Occidente SA de CV (Cooper Tire)
Guadalajara,
Mexico, 2005
x
x
x
10.0
7.2
2.8
U.S. totals:
Canadian totals:
Mexican totals:
TOTAL:
www.moderntiredealer.com
448.63
41.3
69.2
559.13
105.08
10.2
22.9
138.18
54.0
0.0
4.3
58.3
Others
per
day:
0.0
0.01
0.0
Total
7.0
0.01
30.0
0.0
14.0
0.0
5.0
0.0
5.18
2.0
5.0
6.0
202.88
0.0
0.0
0.0
1.7
5.5
7.2
2.35
.25
2.6
3.5
1.1
4.6
5.0
12.6
0.33
11.25
8.1
19.68
0.33
11.25
8.1
19.68
0.0
17.6
0.03
0.5
0.53
0.03
0.5
0.53
0.0
0.0
0.0
1.0
26.8
27.8
0.0
20.0
0.14
0.0
0.0
0.14
2.14
9.0
10.5
21.64
0.0
20.0
75.98
18.0
.14
94.12
683.69
69.5
96.54
849.73
San Luis Potosi, Mexico, in mid-2017.
Giti Tire (USA) Ltd.’s manufacturing
facility in Chester County, S.C., also is
expected to be producing tires in 2017.
Of the 59 tire plants in operation,
34 of them, or 57.6%, are non-union.
Of the 62 plants in North America in
1976, nearly all of them were unionized.
Forty years ago, the former Firestone Tire & Rubber Co. owned 11
manufacturing facilities in the U.S.,
more than any other tire company
(Goodyear controlled seven plants,
while its Kelly-Springfield subsidiary
ran four). However, that number slowly
dwindled following a 140-day industry
strike by the United Rubber Workers
(now part of the United Steelworkers)
in 1976.
By 1987, Firestone was producing
tires in only five domestic plants. During
a strike of Firestone workers in 1988,
a union representative attempted to
foster strength among union workers
by crediting the ’76 strike with closing
six Firestone plants. The ’88 strike
only lasted seven days. That same year,
Bridgestone Corp. purchased Firestone.
Since 1999, Bridgestone has opened
three plants in North America, two in
the U.S. (both in Aiken, S.C.) and one
in Mexico. None of them are unionized.
Bridgestone plans to increase the
capacity at its non-union Wilson, N.C.,
plant by 3,000 tires a day by 2018 as
part of a $164 million investment. ■
Trelleborg closed its industrial
tire plant in Hartville, Ohio, in
2009.
Yokohama Tire Corp. is already producing more tires
in West Point, Miss., than it
receives from its GTY joint
venture with Continental Tire.
Toyo took its name out of the
General-Toyo-Yokohama collaboration in 2011.
Cooper Tire & Rubber Co.
has a 58% stake in its joint
venture plant in Guadalajara, Mexico.
In 2006, Canada produced
118,500 tires a day.
69