shipments, market share, pricing and more — mtd’s facts

January 2021 | Vol. 102, No. 1 | $30 | www.moderntiredealer.com

Shipments, market share, pricing and more — MTD’s Facts Issue

drills down into the numbers

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?

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?

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M T D J a n u a r y 2 0 2 132

2 0 2 1 M T D F a c t s I s s u e

Much has been written about the devastating impact that the COVID-19 pandemic had on the world economy during the first half of 2020.

Less has been written about what has happened since then, including a faster-than-anticipated economic

recovery that kicked in during the summer months.According to the International Monetary Fund’s (IMF) most

recent World Economic Outlook, commerce “normalized” at an above-expected rate this past summer, reaching an apex during the third quarter, with a bruised-but-unbowed global economy “climbing out from the depths to which it had plummeted during the ‘Great Lockdown’ in April.”

The same trajectory played out in the U.S. and — as a microcosm within it — the domestic tire industry.

Both tire manufacturers and tire dealers enjoyed a rebound in business during June, July, August and beyond, thanks to the release of pent-up demand driven by economic stimulus, the relaxation of strict stay-at-home orders, an uptick in vehicle miles driven and other, interdependent factors.

Tire manufacturers, in particular, benefitted from this “restart” as units began to flow into the original equipment channel again, when vehicle manufacturers ramped up production following a significant draw-down. (More than 90% of vehicle manufacturers in the U.S. had suspended production by the end of the first quarter, according to reports. New vehicle sales bottomed out in April.)

Various tire manufacturers’ third quarter financials reflected a resumption of positive momentum, as they continued to jockey for position on the global stage.

DEALERS ADAPTED TO CHANGEAs the tire and auto service industries remained “essential,” tire dealers, in particular, displayed a tremendous amount of resilience.

Agile, quick-thinking dealers used the pandemic as an oppor-tunity to introduce new services, including text-to-pay, online scheduling and vehicle pick-up and delivery, among others — many of which were so well-received by customers that they have become permanent offerings.

As more consumers turned to e-commerce, many tire dealers also shored up their online presence, making it easier for in-market buyers to connect with them.

32

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

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

*CHENG SHIN DOES BUSINESS AS MAXXIS INTERNATIONAL

World Leaders in New Tire Sales (Fiscal year 2020; in billions of U.S. dollars)

Overall U.S. Replacement Tire Sales(Total value of 2020 U.S. replacement tire market: $39.9 billion)

SEGMENT 2020 2019Passenger $25.6 $28.2

Light truck $5.4 $5.7

Commercial truck $6.7 $6.9

OTR $1.7 $1.8

Ag $.595 $.592

Tire Company 2020 2019Bridgestone Corp. $22.6 $27.0

Michelin Group $22.0 $25.6

Continental AG $11.5 $12.9

Goodyear Tire & Rubber Co. $10.2 $12.5

Sumitomo Rubber Industries Ltd. $6.2 $7.0

Pirelli & Cie SpA $4.8 $5.9

Hankook Tire Co. $4.7 $5.9

Yokohama Rubber Co. $4.1 $5.0

Zhongce Rubber Group Co. Ltd. $4.1 $4.0

Cheng Shin Rubber Ind. Co. Ltd.* $2.8 $3.5

Toyo Tire & Rubber Co. Ltd. $2.8 $3.0

Giti Tire Pte. Ltd. $2.6 $3.4

Cooper Tire & Rubber Co. $2.5 $2.7

Kumho Tire Co. Inc. $2.0 $2.1

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

Year Replacement OE2020 202.6 36.2

2019 222.7 45.1

2018 217.0 47.0

2017 209.3 46.0

2016 207.7 49.0

2015 205.9 49.0

2014 206.6 46.3

2013 201.6 44.0

2012 192.0 40.5

2011 196.5 36.0

2010 198.7 34.6

Segment 2020 2019Passenger (retail) 28.8% 30.0%

Passenger (wholesale) 12.6% 13.5%

Light truck (retail) 24.4% 25.3%

Medium truck (retail) 15.6% 15.4%

Retread (medium truck) 17.5% 20.0%

U.S. Passenger Tire Shipments(in millions of units)

U.S. Tire SaleS Average Margins

DID MARGINS HOLD?Independent tire dealers fought hard to maintain their margins at a flat, year-over-year level during 2020.

Average margins in the passenger retail, passenger wholesale, light truck retail and medium truck retread segments declined slightly from 2020 numbers — with retread margins shrinking the most. Meanwhile, commercial tire dealers were able to collect a little more for their wares.

SHIPMENTS: NOT AS BAD AS EXPECTEDGiven all that happened during 2020, it’s no surprise that U.S. replacement passenger tire unit shipments were down for the year, dropping by around 9.%

However, replacement light truck and medium/heavy truck tire unit shipment declines were not as pronounced, beating projections that were made during the first half of the year. (Replacement light truck tire shipments fell around 5%. Medium/heavy truck tire shipments dropped around 2%.)

LOOKING AHEADThere are a number of factors that could have a material impact on the domestic tire market in the new year. These include the distribution and effectiveness of newly introduced COVID-19 vaccines, which could boost consumer confidence; the recently passed Consolidated Appropriations Act, which includes an exten-sion of the Paycheck Protection Program; the potential for tariffs applied to consumer tires made in South Korea, Taiwan, Thailand and Vietnam; and actions by the incoming Biden administration. Another development to watch is the continued bottleneck in transpacific container shipping, which is causing supply chain slowdowns and freight rate increases.

U.S. Light Truck Tire Shipments (in millions of units)

U.S. Medium Truck Tire Shipments (in millions of units)


2019 32.0 5.9

2018 31.1 5.6

2017 30.8 5.4

2016 31.4 4.9

2015 29.0 4.6

2014 28.8 4.8

2013 28.3 4.4

2012 28.3 4.2

2011 28.6 4.1

2010 28.0 3.5


2019 18.9 6.5

2018 21.0 6.2

2017 19.2 5.7

2016 18.4 5.3

2015 18.0 6.3

2014 17.3 5.8

2013 15.7 5.0

2012 16.0 5.3

2011 17.0 4.9

2010 15.3 3.0


M T D J a n u a r y 2 0 2 134

I m p o r t s

L ooking at passenger and overall consumer tire imports in 2020, Thailand once again shipped the most units to the United States, continuing a multi-year streak.

But will this trend continue long-term? Much of that will depend on the result of the U.S. Department of Commerce’s

(DOC) ongoing investigation of tire manufacturers and exporters from South Korea, Taiwan, Thailand and Vietnam.

Right before press time, the DOC said it had “preliminarily determined that exporters” from those countries “have dumped” consumer tires into the U.S.

Of the four countries mentioned above that are presently on the docket, only two showed gains during the past year.

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%. Meanwhile, Taiwan’s passenger tire exports to the U.S. increased 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%. Its overall consumer tire exports fell 5.1%.

South Korea’s passenger and overall consumer tire exports to the U.S. declined by 20.9% and 19.2%, respectively.

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.

By comparison, China exported around 2.2 million passenger tire units to the U.S. in 2020, according to MTD research.

Consumer tire shipments to the U.S. from China peaked at 60.5 million units during 2014.

BUT TARIFFS COULD IMPACT 2021 SHIPMENTS

Thailand once again tops list OF EXPORTERS TO U.S.

Country 2020 2019 % ChangeThailand 34.9 37.3 -6.4%

South Korea 13.6 17.2 -20.9%

Mexico 13.3 14.1 -5.6%

Indonesia 11.4 12.5 -8.8%

Vietnam 10.5 9.9 +6.0%

Canada 8.6 12.4 -30.6%

Taiwan 8.6 8.5 +1.1%

Japan 6.5 8.4 -22.6%

Chile 3.4 5.5 -38.1%

Malaysia 2.5 1.6 +56.2%

Country 2020 2019 % CHANGEThailand 42.7 45.0 -5.1%

South Korea 15.5 19.2 -19.2%

Mexico 15.2 15.9 -4.4%

Indonesia 13.2 14.5 -8.9%

Vietnam 13.1 12.1 +8.2%

Canada 12.2 15.9 -23.2%

Taiwan 9.6 9.1 +5.4%

Japan 8.2 10.7 -23.3%

Chile 4.1 6.0 -31.6%

China 2.8 3.3 -15.1%

Country 2020 2019 % ChangeThailand 3.7 4.5 -17.7%

China 1.1 2.9 -62.0%

Canada 1.0 1.6 -37.5%

Japan 1.0 1.4 -28.5%

Vietnam 0.9 0.7 +28.5%

South Korea 0.7 0.6 +16.6%

Brazil 0.2 0.3 -33.3%

Germany 0.2 0.3 -33.3%

India 0.2 0.2 +0.0%

Spain 0.2 0.5 -60.0%

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

2020 U.S. Consumer Tire Imports (in millions of units)

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

GONE COMMERCIALOn the commercial truck tire side, tariffs continued to impact exports from China, which declined by more than 60% for the second year in a row. Both Vietnam (up 28.5%) and South Korea (up 16.6%) posted gains versus 2019 levels.


M T D J a n u a r y 2 0 2 136

P a s s e n g e r / l i g h t t r u c k t i r e m a r k e t s h a r e

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.

COVID-19 GAVE A BOOST TO CERTAIN BRANDS

Flight to value

2020 replacement Passenger Tire Brand Market Shares (based on an estimated 202.6 million units)

2020 replacement Light Truck Tire Brand Market Shares (based on an estimated 30.4 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%

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%

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2020 North American OE Consumer Tire Market ShareBMW

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%

FordGoodyear.............................24%Michelin.............................24%Continental.........................20%Hankook.............................10%Pirelli.....................................9%General.................................7%BFGoodrich..........................3%Bridgestone.........................2%Toyo.........................................1%

General MotorsGoodyear............................37%Michelin.............................22%Bridgestone.......................14%Firestone............................12%Continental...........................6%Hankook...............................5%General.................................2%Pirelli.....................................2%

OE ROLLERCOASTERTo 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.

HondaGoodyear..............................25%Michelin.............................25%Bridgestone.........................17%Continental.........................17%Hankook...............................9%Yokohama.............................4%Firestone...............................3%

Hyundai/KiaHankook.............................41%Kumho.................................29%Nexen.................................20%Continental.........................10%

Mercedes-BenzContinental/........................32%Pirelli...................................25%Bridgestone.......................14%Michelin.............................11%Goodyear..............................7%Dunlop..................................6%Cooper..................................4%Yokohama.............................1%

NissanContinental.........................29%Michelin.............................28%Goodyear............................17%Falken...................................7%Bridgestone.........................5%Toyo.......................................5%BFGoodrich..........................4%Hankook................................2%Dunlop..................................1%General.................................1%Kumho...................................1%

SubaruBridgestone..........................57%Continental.........................27%Goodyear..............................8%Falken....................................6%Yokohama.............................2%

TeslaContinental.........................40%Michelin.............................25%Goodyear.............................20%Pirelli...................................10%Hankook...............................5%

ToyotaBridgestone.......................25%Michelin.............................25%Goodyear............................12%Continental...........................6%Dunlop...................................6%Hankook...............................6%BFGoodrich..........................5%Toyo.........................................5%Yokohama.............................4%Firestone..............................3%General.................................2%Falken....................................1%

VolkswagenContinental.........................46%Goodyear..............................14%Kumho.................................14%Hankook..............................11%Falken...................................9%Bridgestone.........................5%Nexen...................................1%

VolvoPirelli...................................50%Continental.........................30%Michelin.............................20%

Brand 2020Goodyear 25.0%

Michelin 19.6%

Continental 13.9%

Bridgestone 13.1%

Hankook 7.3%

Firestone 4.0%

Pirelli 3.5%

General 2.4%

Kumho 2.0%

BFGoodrich 1.8%

Yokohama 1.8%

Nexen 1.5%

Dunlop 1.2%

Toyo 1.1%

Others 1.8%*

2020 NORTH AMERICAN OE CONSUMER TIRE MARKET SHARE (BRAND TOTALS)(based on 47.8 million con-sumer tire units, excluding import vehicles)

*”OTHERS” INCLUDES FALKEN AND COOPER


M T D J a n u a r y 2 0 2 138

D i s t r i b u t i o n

I ndependent tire dealers remain the dominant force in replacement consumer tire retail sales in the United States and even gained ground during 2020 as vehicle owners turned to them for expert advice and service when pent-up demand that accumulated during the first few months of the COVID-19

pandemic finally loosened.At the same time, mass merchandisers lost share, which was

driven in large part by the temporary shutdown of Walmart Auto Care Centers after the pandemic hit, followed by a slower-than-anticipated reopening of those outlets.

Auto dealerships and tire company-owned stores maintained their respective positions versus last year.

While the below chart tracks market share for brick-and-mortar operations, it should be noted that online tire sales accelerated during 2020 due to stay-at-home orders and changing consumer habits.

INDEPENDENT DEALERS CONTINUE TO DOMINATE

Changing channels

Channel 2020 2019 2018Independent tire dealers 65.5% 63.0% 62.5%

Auto dealerships 9.5% 9.5% 9.5%

Mass merchandisers 8.0% 10.5% 10.5%

Warehouse clubs 8.0% 8.5% 8.5%

Tire company-owned stores 6.0% 6.0% 6.5%

Miscellaneous outlets 3.0% 2.5% 2.5%

Channel 2020 2019 2018Independent wholesale/distributors 80.0% 79.0% 79.5%

Tire company-owned outlets 8.0% 8.0% 7.0%

Miscellaneous outlets 12.0% 13.0% 13.5%

Warehouse club 2020 2019 2018Sam’s Club 557 599 597

Costco Wholesale Corp. 554 546 533

BJ’s Warehouse Club Inc. 219 219 223

Retailer LocationsWalmart Auto Care Centers 2,582

Bridgestone Retail Operations1 2,200

Monro Inc. 1,242

Discount Tire Co./America’s Tire 1,071

Mavis Tire/Town Fair Tire Centers2 1,003

Pep Boys — Manny, Moe & Jack 951

Ford Quick Lane Tire & Auto Centers 802

TBC Corp.3 621

Goodyear Tire & Rubber Co.4 557

Les Schwab Tire Centers Inc.5 443

Sears Auto Centers 39

U.S. Consumer Tire Retail Market Share By Channel

U.S. Consumer Wholesale Market Share By Channel

Warehouse Clubs in the U.S.

Other Top Tire Retailers in the U.S.

In line with gains made in the replacement consumer tire sales channel, independents continue to gain in the wholesale channel, as well — now making up 80% of the U.S. wholesale market, followed by tire company-owned stores, which held a flat position year-over-year, and miscellaneous outlets, which lost some share.

PLAY IT AGAIN, SAM?Despite consumers’ continued preference for buying tires at independent tire dealerships, most warehouse clubs have managed to hold their ground.

Costco Wholesale Corp. added locations during 2020, bringing its current count up to 554, a gain of nearly 1.5% from this time last year and up 3.9% from 2018. (California has the most Costco locations, with 131 outlets.)

AND NOW THERE ARE TWOLooking at tire manufacturer-owned retail stores in the U.S., the number of Bridgestone outlets remained flat year-over-year.

Goodyear Tire & Rubber Co.’s company-owned retail store count decreased from 580 at the end of 2019 to 557 at press time.

A third tiremaker, Nokian Tyres plc, exited the company-owned retail store channel in September 2020 by selling its 10 Vianor Tire Centers. (All Vianor stores were in the New England area.)

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WALMART TEMPORARILY SHUTTERED ITS WALMART AUTO CARE CENTERS DURING 2020.


M T D J a n u a r y 2 0 2 140

D i s t r i b u t i o n

DEALERSHIP LOCATIONS BY THE NUMBERSOut of the nine regions that make up the U.S., the South Atlantic area has the most independently owned tire dealership locations, with 21% of the total. The East North Central region is next at 14%. The Pacific and West South Central regions are tied, with 13% each. The West North Central area rounds out the “top five.”

New EnglandMaine......................................................................................New Hampshire.....................................................................Vermont..................................................................................Massachusetts......................................................................Rhode Island..........................................................................Connecticut............................................................................

Middle AtlanticNew York................................................................................New Jersey............................................................................Pennsylvania..........................................................................

East North CentralOhio.........................................................................................Indiana....................................................................................Illinois......................................................................................Michigan.................................................................................Wisconsin...............................................................................

West North CentralMinnesota..............................................................................Iowa.........................................................................................Missouri..................................................................................North Dakota.........................................................................South Dakota.........................................................................Nebraska................................................................................Kansas.....................................................................................

South AtlanticDelaware................................................................................Maryland................................................................................Washington, D.C...................................................................Virginia....................................................................................West Virginia...............................................................................North Carolina.......................................................................South Carolina.......................................................................Georgia....................................................................................Florida......................................................................................

East South CentralKentucky.................................................................................Tennessee..............................................................................Alabama..................................................................................Mississippi.............................................................................

West South CentralArkansas.................................................................................Louisiana.................................................................................Oklahoma...............................................................................Texas.......................................................................................

5%11% 16%6%39%6%22%

9%36%21%43%

14%30%15%24%19%12%

10%21%17%29%4%4%10%15%

21%1%6%0%13%3%20%9%18%30%

7%21%35%27%17%

13%10%13%10%67%

MountainMontana..................................................................................Idaho........................................................................................Wyoming.................................................................................Colorado..................................................................................New Mexico...........................................................................Arizona....................................................................................Utah..........................................................................................Nevada....................................................................................

PacificAlaska......................................................................................Washington............................................................................Oregon.....................................................................................California.................................................................................Hawaii.....................................................................................

Independent Tire Dealer Locations By Region and State(Based on 29,000 total)

Brands Listed in the 2020 MTD 100

8%9%10%4%24%10%18%15%10%

13%1%13%10%75%1%

2020RANKING BRAND DEALERSHIPS/

LOCATIONS2019

RANKING1 Michelin 80/6,637 1

2 BFGoodrich 75/5,956 3

3 Bridgestone 74/5,399 5

4 Continental 70/6,855 2

5 Firestone 68/4,131 7

5 Goodyear 68/5,646 4

7 General 59/5,453 6

7 Uniroyal 59/3,094 9

7 Yokohama 59/4,788 8

10 Cooper 54/5,323 10

11 Hankook 48/5,599 11

12 Dunlop 42/4,939 12

13 Toyo 36/3,414 16

14 Kelly 34/2,111 14

15 Pirelli 33/4,271 13

16 Falken 31/3,239 17

17 Kumho 28/3,538 15

18 Nexen 23/1,007 18

18 Nitto 23/2,439 19

20 Nokian 14/1,100 20

NUMBERS ARE BASED ON TIRE DEALERSHIPS’ SELF-DISCLOSURES AND ADDITIONAL MTD RESEARCH.

BRAND BATTLE ROYALEThe MTD 100, which is published each July, lists the 100 largest independent tire store chains in the U.S., based on their number of outlets. The MTD 2020 also drills down into the brands that each dealership sells.

Here are the 20 most-mentioned brands in the 2020 MTD 100, based on the number of dealerships that carry them.


M T D J a n u a r y 2 0 2 144

T i r e s i z i n g

O ne trend that will not reverse itself is the move toward larger-diameter passenger and light truck tires, both at the OE and replacement levels.

In the P-metric category, one new 17-inch size, two new 19-inch sizes, one new 20-inch size and one new

21-inch size were added in 2020. Total P-metric sizes that are currently available equal 370.

LARGE-DIAMETER TIRES CROWD PASSENGER, LT SEGMENTS

Up, up and away!

12-inch: 1 13-inch: 14 14-inch: 26 15-inch: 55



24-inch: 7 26-inch: 1 *SOURCE: TIRE & RIM ASSOCIATION

Rank Size

1 225/65R17

2 205/55R16

3 215/55R17

4 215/60R16

5 195/65R15

6 225/50R17

7 225/60R16

8 235/65R17

9 225/60R17

10 235/60R18

Rank Size

1 LT265/70R17

2 LT245/75R16

3 LT225/75R16

4 LT275/70R18

5 LT265/75R16

6 LT245/75R17

7 LT235/80R17

8 LT285/70R17

9 LT275/65R18

10 LT235/85R16

OE P-Metric/Metric (current)

Size % of total

235/45R18 4.7%

275/55R20 4.3%

225/65R17 4.1%

235/60R18 3.9%

235/40R19 3.4%

OE P-Metric/Metric (previous year)

Size % of total

225/65R17 4.1%

235/60R18 3.8%

275/55R20 3.5%

235/45R18 3.3%

235/40R19 3.0%

OE Light Truck (current)

Size % of total

LT275/70R18 13.6%

LT245/75R17 11.9%

235/65R16 C 11.6%

LT275/65R18 10.8%

LT275/65R20 9.4%

OE Light Truck (previous year)

Size % of total

LT245/75R17 13.1%

235/65R16 LRC 11.8%

LT275/70R18 10.3%

LT275/65R18 8.6%

LT225/75R16 8.3%

14-inch: 6 15-inch: 18 16-inch: 37

17-inch: 30 18-inch: 33 20-inch: 23

22-inch: 17 24-inch: 9 26-inch: 3

14-inch: 1 15-inch: 22 17-inch: 18

18-inch: 15 20-inch: 21 22-inch: 9

24-inch: 9 26-inch: 3 28-inch: 2

Available Passenger Car Sizes by Rim Diameter

Most Popular Replacement Passenger Tire Sizes

Most Popular Replacement LT Tire Sizes

Most Popular Domestic OE Passenger/LT Tire Sizes

Available LT Metric Sizes by Rim Diameter

Available LT High Flotation Sizes By Rim Diameter

In the LT metric category, one new 18-inch size and one new 34-inch size were added this past year. The total number of LT metric sizes equal 176.

In the LT high flotation category, one new 15-inch size, two new 17-inch sizes, one new 20-inch size, two new 22-inch sizes and one new 24-inch sizes were added in 2020. The total number of available LT high flotation sizes now equals 100.

*SOURCE: TIRE & RIM ASSOCIATION

*SOURCE: USTMA

*SOURCE: USTMA

*SOURCE: USTMA

*SOURCE: USTMA

*SOURCE: TIRE & RIM ASSOCIATION

Currently, 225/65R17 is the most popular passenger tire size in the replacement channel. Four more 17-inch sizes are in the replacement passenger tire “top 10,” listed above. (An 18-inch size is at number 10.)


M T D J a n u a r y 2 0 2 146

T i r e p r i c i n g

A LOOK AT PRICING BY TIER, REGION AND MORE

PRICES CLIMBED DURING 2020

P erhaps the most significant pric-ing trend observed during 2020 was the aforementioned “flight to value” made by consumers who were financially impacted by the

COVID-19 pandemic. This trend remained as 2020 drew to

a close — placing a capstone on a year in which prices across all tiers continued to increase.

“Over the course of 2020, we have seen tire prices across all steps trend upward slightly,” confirms J.P. Brooks, director of business development for The Fitment Group, which collects and analyzes more than eight million individual retail tire prices each week.

“We found that the East South Cen-tral market — which includes Tennessee, Kentucky, Mississippi and Alabama — saw the most significant price increase” at the opening price point and fourth tier levels, specifically in size 225/65R17.

“This market also trended to the higher end of advertised prices across all tiers of this specific size,” he adds.

TO THE EASTAccording to The Fitment Group’s research, “some of the highest average pricing resides in the New England market,” reveals Brooks.

The most dramatic price fluctuations happened in May, according to Fitment Group data.

“We did see a small dip in pricing in the months of August and September, followed by a rebound in October.”

The charts on these pages list passenger and light truck tire prices as they stood near the end of the year, broken down by price point, region and speed rating. (Regions listed on this page are identified slightly differently than the list of regions found on page 40.)

The Fitment Group also provided a detailed look at online tire pricing across numerous e-commerce portals, including several that are operated by independent tire dealerships.

*SOURCE: THE FITMENT GROUP (WWW.FITMENTGROUP.COM)


Pricing By U.S. Region (Size LT265/70R17)

Size Major Brand Low-Cost Overall

235/60R14 $160.38 $115.77 $138.45

235/75R16 $153.20 $88.46 $124.20

205/55R16 $136.32 $68.81 $120.57

215/60R16 $123.93 $72.71 $111.18

215/55R17 $157.38 $78.89 $134.34

275/65R18 $236.10 $146.79 $215.21

LT225/75R16 $190.17 $109.54 $163.49

LT245/75R16 $207.27 $124.58 $180.30

LT245/75R17 $228.03 $137.46 $198.29

31X10.5R15 $190.51 $138.75 $169.82

Region Size OPP Value Better Best WinterEast North Central

LT265/70R17 $150.29 $199.97 $213.98 $233.05 $210.41

East South Central

LT265/70R17 $149.05 $203.96 $220.91 $238.78 $218.00

Middle Atlantic LT265/70R17 $134.01 $188.96 $214.63 $234.26 $209.65

Mountain LT265/70R17 $157.97 $216.70 $208.70 $227.07 $202.08

New England LT265/70R17 $146.05 $175.49 $227.84 $241.76 $212.78

Pacific LT265/70R17 $153.29 $196.46 $200.60 $217.76 $198.49

South Atlantic LT265/70R17 $143.22 $197.96 $214.67 $229.17 $205.55

West North Central

LT265/70R17 $155.37 $207.46 $209.79 $227.03 $201.33

West South Central

LT265/70R17 $147.24 $201.62 $211.18 $225.25 $198.39

2020 Average U.S. Advertised Tire Prices

The following major brand sizes listed above saw year-over-year price increases: 235/60R14, 235/75R15, 205/55R16, 215/60R16, 275/65R18, LT225/75R16, LT245/75R16 and LT245/75R17. The following major brand sizes were priced lower, year-over-year: 215/55R17 and 31x10.50R15.



Nexen RoAdian GTX (size 225/65R17)

Website Price

amazon.com $108.39

bigbrandtire.com $118.93

canadawheels.ca $141.11

jackwilliams.com $120.95

lowtireprice.com $106.00

onlinetires.com $114.99

simpletire.com $118.98

tirediscounters.com $137.00

tireseasy.com $111.45

walmart.com 108.39


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

Toyo Open Country AT IIII (size LT245/75R16)

Website Price

allamericanautoandtire.com $108.39

americantiredepot.com $138.06

belletire.com $185.00

bigbrandtire.com $236.99

integratire.com $330.00

mavistire.com $184.08

onlinetires.com $184.08

pneuschartrand.ca $231.20

prioritytire.com $206.64

quicklane.com $216.00

simpletire.com $184.08

tireamerica.com $184.08

tirebuyer.com $184.08

tirecraft.com $261.25

tirerack.com $193.36

tireseasy.com $184.08

townfair.com $195.00

walmart.com $182.48

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

Online Tire Pricing 2020 Advertised Pricing Breakdown

E-COMMERCE GROWSThe 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:

PRICES ARE GOING UPA number of tire manufacturers enacted price hikes last month and earlier this month. Hankook Tire America Corp. raised its commercial truck tire prices up to 5% on Dec. 1, the same day that Yokohama Tire Corp.raised prices on select truck tires by up to 6% — following a consumer tire price hike of up to 5% that was enacted on Nov. 1.

Goodyear Tire & Rubber Co. raised prices on its Goodyear and Dunlop brand consumer tires on Dec. 1.

Sumitomo Rubber North America (SRNA) boosted its commercial truck tire prices up to 6% on Dec. 1.

SRNA followed that on Jan. 1 with a consumer tire price hike of up to 8%, the same day that Bridgestone Americas Inc. increased the price of certain passenger and light truck tires, without publicizing exact amounts.

Pirelli Tire North America Inc. raised rates on its passenger and light truck tires, varying by line and size, at the start of the new year. Michelin North America Inc.will increase prices on select Michelin and BFGoodrich brand consumer tires up to 5% on Feb. 1

What’s next? “Forecasting tire prices 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.


M T D J a n u a r y 2 0 2 148

C o m m e r c i a l t i r e m a r k e t

COMMERCIAL WAS A BRIGHT SPOT DURING A TOUGH YEAR

Diamond in the rough

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.

2020 U.S. Replacement Medium/Heavy Truck Tire Brand Shares (based on 18.5 million units)

2020 U.S. Retreaded Truck Tire Market SharE (based on 14 million units)

2020 Ag Tire Shipments

Brand ShareBridgestone.........................................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%

Bridgestone/Bandag............................44.0%Goodyear................................................23.0%Michelin/Oliver......................................23.0%Marangoni.............................................5.5%Continental................................................3.5%Others.....................................................1.0%

Category 2020 ShipmentsRadial rear OE..................................190,000Radial rear replacement................298,700Bias rear OE.....................................320,000Bias rear replacement....................390,000Small OE............................................310,000Small replacement...................1.25 million

RETREADING: STEADY AS SHE GOESThe 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.

AG TIRES PLOWED AHEADDemand 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.

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.)


M T D J a n u a r y 2 0 2 150

P l a n t c a p a c i t i e s

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

AS OF JANUARY 1, 2021 (IN THOUSANDS OF UNITS)North American Tire Plant Capacities



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


M T D J a n u a r y 2 0 2 152

A u t o m o t i v e s e r v i c e

TPMS IS THE MOST COMMON SERVICE OFFERED Auto service snapshot

One 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 DOMINATESTire/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

NUMBER OF SERVICE BAYSIN OPERATION

NUMBER OF Technicians Employed Per Outlet

Percentage of Technicians Who Are ASE-Certified

Number of Automotive Service Jobs Performed Per Month

Service % of dealers that offerAir 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%

Number of bays % 1...................................................................4%2..................................................................7%3..................................................................11%4...............................................................12%5.................................................................7%6................................................................13%7..................................................................9%8..................................................................17%9...................................................................2%10...................................................................6%11...................................................................012...................................................................2%13...................................................................014...................................................................3%15...................................................................015+..............................................................7%

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...................................................................012...................................................................1%13...................................................................014...................................................................015...................................................................1%15+.................................................................1%

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%

Type of service Average number of jobs/month Air conditioning..........................................9Alignment...................................................90Battery/electrical.....................................27Bearings/seals..........................................10Brakes.........................................................56Chassis/suspension.................................58Chemicals (injector cleaners, etc.).......15Cooling systems........................................24Electronic diagnosis................................33Engine repair/diagnostics/tune-ups.......17Exhaust systems.......................................11Ignition and spark plug...............................27Oil/lubrication..........................................205Shocks/struts............................................18TPMS........................................................120Visibility (wipers)......................................40

LUCKY NUMBER SEVENSeventeen 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.

TECHS: HOW MANY ARE TRAINED AND WHAT THEY DOThe 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.)


M T D J a n u a r y 2 0 2 154

M e r g e r s a n d a c q u i s i t i o n s

M&A DIDN’T SLOW IN 2020. EXPECT MORE THIS YEAR

Blue Skies Ahead

Mergers and acquisitions con-tinued unabated during 2020. Several factors drove activity, says tire dealership M&A expert Michael McGregor of Focus In-

vestment Banking.“First, many tire dealers’ businesses

bounced back and many achieved record results after the initial shock” of COVID-19 dissipated. “Second, the stock market boomed. And last, interest rates went even lower and more cash became available. That’s an environment conducive to getting deals done.”

Expect more of the same in 2021, he adds. “I think we will see M&A activity at all levels. The economy should continue to improve” and “there is a strong likelihood that some form of a long-term capital gains tax increase is going to happen within the next two years. Owners who are thinking about selling will want to do so before that happens.

“With a stronger economy, the stock market at an all-time high and cash deals readily available, I don’t see it slowing down. I see nothing but blue skies ahead.”

The chart to the right lists tire dealership acquisitions that took place during 2020. The largest acquisition, Meritage Group LP’s purchase of Les Schwab Tire Centers Inc., encompassed nearly 440 locations.

Mavis Tire made two large acquisitions: 112 National Tire & Battery (NTB) stores during the first quarter and 100 Town Fair Tire Centers locations during the fourth quarter.

GB Auto Service Inc. made the fourth largest acquisition: more than 30 Sun Devil Auto Service/Sun Auto Service outlets.

Pomp’s Tire Service Inc. acquired nearly 20 GCR Tires & Service outlets from Bridge-stone Americas Inc. Monro Inc. acquired 17 Allen Tire Co. stores.

Leeds West Groups continued to pick up Big O and Midas locations.

BUYER TIMING ACQUIRED # OF OUTLETS LOCATION(S)

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.

Mavis Tire Express Services Corp.

1Q NTB stores 112 Atlanta, Ga.; Boston, Mass.; Chicago, Ill.; Philadelphia, Pa.

Pomp’s Tire Service Inc. 1Q GCR Tires & Service stores (Bridgestone)

19 Iowa, Illinois, Kansas, Michigan, Minne-sota, Nebraska, North Dakota, South Dakota, Wisconsin

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.

Burt Brothers Tire & Service Inc.

2Q Private owner (dormant Firestone store)

1 Salt Lake City, Utah

Jack’s Tire & Oil Inc. 2Q A&E Tire Inc. 5 (commercial) Colorado

Leeds West Group 2Q Midas store 1 Oklahoma City, Okla.

Van’s Auto Service Tire Pros 2Q Parrish-McIntyre Tire Co. 1 Akron, Ohio

GB Auto Service Inc. 3Q Tate Boys Tire & Service 7 Oklahoma

GB Auto Service Inc. 3Q Sun Devil Auto Service/Sun Auto Service*

32 Arizona, Nevada, Texas

Gills Point S Tire & Auto Service

3Q Vianor Tire Centers 10 New England

Integrity Tire Auto Service Centers

3Q The Tire Guys store 1 Redlands, Calif.

Jack Williams Tire Co. 3Q McCarthy Tire Service Co. Inc. store

1 Scranton, Pa.

K&M Tire Inc. 3Q Safemark 1 Middletown, Pa.

Leeds West Groups 3Q Midas store 1 Oklahoma City, Okla.

Leeds West Groups 3Q Tires Plus store 1 Arvada, Colo.

Leeds West Groups 3Q Big O Tires stores 3 Kentucky, Ohio

Meritage Group LP 3Q Les Schwab Tire Centers Inc.

438 Oregon, Washing-ton, Alaska, Idaho, Montana, California, Nevada, Utah, Colorado, Wyoming

Monro Inc. 3Q Allen Tire Co. 17 California

Purcell Tire & Rubber Co. 3Q Wilson Industrial Tire** 1 Springfield, Mo.

Ross and Sean Burton 3Q Big O Tires Stores 9 Colorado

Service Tire Truck Centers 3Q Highlands Tire & Service 3 (commercial) /1 retread plant

Pennsylvania

Telle Tire & Auto Service Inc. 3Q J&W Automotive 1 St. Louis, Mo.

Van’s Auto Service Tire Pros 3Q Auto Tire & Service Specialists

1 Akron, Ohio

Van’s Auto Service Tire Pros 3Q Parrish-McIntyre Tire Co. 1 Medina, Ohio

AAA Northern California, Nevada & Utah

4Q McLea’s Tire & Automo-tive Centers

5 California

Black’s Tire Service Inc. 4Q Burlington Tire Service Inc. 1 Burlington, N.C.

Border Tire LLC 4Q Canyon Tire Sales 5 (commercial) /1 retread plant

California

GB Auto Service Inc. 4Q Reliable Automotive 3 Texas

Leeds West Groups 4Q Big O Tires stores 2 Colorado Springs, Colo.

Leeds West Groups 4Q Midas store 1 Norman, Okla.

Leeds West Groups 4Q Midas store 1 Benton Harbor, Mich.

Mavis Tire Express Services Corp.

4Q Town Fair Tire Centers Inc.

100 Connecticut, Mas-sachusetts, Rhode Island, New Hampshire, Vermont, Maine

Purcell Tire & Rubber Co 4Q Quality Tire Co. 9 Utah, Idaho, Montana, Colorado

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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shipments, market share, pricing and more — mtd’s facts

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