Last month, we started a three-part series on the future of the tire and wheel industry.
Tire manufacturers told us UHP demand is still rising and will continue to outpace other segments for the foreseeable future. The quest is now for the ultimate tire that can “do it all,” according to one tire manufacturer. Sounds like the tire industry is moving toward its goals, so now we turn our focus to the wheel side of the industry.

Last month, I spoke about the potential rise in demand for lighter wheels, both at the OE and aftermarket levels. With CAFE standards on the rise, it is a natural progression to lean toward wheels that achieve light weight while maintaining load capacity. To get an idea of the validity of those statements, I contacted Brian Thomas, marketing communications with Alcoa Wheel and Transportation Products (strongwheels.com).

He says that alternative propulsion vehicles (hybrid, electric, etc.) seem to be settling into 16- to 18-inch sizes, and general UHP is settling into 17- to 22-inch sizes, which are still historically large. “OEMs will continue to offer customers choices with a ‘good, better, best’ sizing option package. I don’t see much ‘back-pedaling’ on sizes.

“This is parallel with the statements made by the tire industry,” Thomas continues. “OEMs continue to scrutinize total unsprung weight. Opportunities exist to reduce weight from the wheel, tire and even the brake package without sacrificing performance or styling.”

For example, Alcoa worked with GM on more than 15 iterations of a 17-inch forged aluminum wheel for the Chevy Volt. The chosen wheel met marketing objectives for styling and appearance, plus engineering requirements for strength, durability, aerodynamics and mass. The wheel weighs just 15 pounds, with much of its mass centered near the hub for better rotational inertia. “These are the sorts of things that OEMs are examining to squeeze the most out of fuel economy or reduce CO2 (the case with European OEMs) without sacrificing performance or style,” Thomas says.

“Because a forged wheel is 20% to 25% lighter than a comparable cast aluminum wheel – and much stronger – we’re seeing many OEMs request forged aluminum wheel solutions for trucks/SUVs, performance vehicles and hybrid/alternative propulsion vehicles,” he says. “Alcoa recently announced a new 18-inch forged wheel with Dura-Bright technology for the new Audi A6 as well as many others that we’ll announce later this year.”

Aftermarket Trends
While Alcoa has produced wheels for the aftermarket for many years, they recently added several new truck styles to their lineup. What does Thomas see happening on that side of the coin?

“We see continued demands for performance wheels and tires for off-roaders. Wheel sizes have settled a bit. Where some of the on-roaders have been buying 18- and 20-inch wheels with chrome, the serious off-roaders are looking for 17-inch models for a lighter wheel and tire package with ultimate strength and durability and the strongest available bead seat for aggressive use. On-roaders crave the look and appearance while off-roaders want functionality.”

In terms of the aftermarket, Kelly Austin, chairman of the SEMA Wheel and Tire Council and sales manager for Advanti Racing USA, also gives us some insight into what we need to know for the vehicles on the road today.

“The key is to look to the vehicles that are still moving in regularity now and what they predict will move in volume soon,” he says. “For example, trucks are not dead. Because of the extreme glut in big, chrome SUV wheels that were being installed on trucks, you would think trucks are dead, but they are not. Moderate- to low-priced options in durable finishes with good styles are still selling very well.

“Cars are not dead,” Austin continues. “You would think so because of the huge losses car dealers are taking in lost volume. But, again, moderate- to low-priced options with durable finishes are moving.”

Speaking of this, our December issue was packed full of colorful wheels with trim packages that completely change the look of the wheel. We discussed how the color options and machined raised edges allowed consumers to buy large diameter wheels when chrome and other expensive finishes were out of their budgetary reach. It also allows manufacturers to extend the life of a style, instead of shelving the mold after only two years.

In light of the new car sales meltdown, Austin offers some advice: “Remember the used-car aftermarket!” Currently, car dealers are making their best profits on the “used car” side of the business. We in the aftermarket industry should observe and learn from this, he notes.

“Every used car sold is a ‘new car’ to someone. And because most used cars are being sold through a dealership for financing purposes, this means the car dealership has to make sure the basic fundamentals of tires (including wheels) and brakes must work properly. Getting close to these opportunities can be a great source of business. Referrals from the local used car dealers to ‘aftermarket’ shops will drive new potential customers,” Austin says.

This type of marketing strategy can be used to capture sales at the point of finance that otherwise wouldn’t be available to many people if they had to buy a car and then tried to purchase wheels and tires through other credit sources. As I have said for years, “It isn’t how much it costs, it’s how much the payments are.”

Ahead of the Curve
The important thing to keep in mind is that in the ever-changing wheels market, staying on top of trends and anticipating change will keep the best manufacturers and dealers on top.

“When trending wheels, everyone must remember our industry changes by the hour,” Austin says. “It has been this way for more than 40 years and will continue long into the future. I guarantee that wheel-related companies that survive have been handling tougher problems than this for years.

“Our immediate goal is to match our products to the amounts of disposable income of basic consumers for volume and use a ‘the sky is the limit’ approach for wealthy consumers and lower volumes,” he continues. “Most consumers desire what they can’t afford, but it’s those products that drive our business.”

I would like to add here that the bigger diameter and high-end wheels attract people into the showroom. Regardless of whether the consumer can buy them, you’ve still gotten the consumer into the showroom. At that point, it is our duty to discuss their needs and desires, qualify them and provide several options that lead to closing the sale.

As for current and future vehicles, the 2010 Camaro will be rolling into showrooms very soon. Be ready to capture sales by calling your vendors now to find out what wheels are available to fit it. Also, the Chevy Volt harnessed a lot of press at the Detroit Auto Show in January.

As mentioned earlier, the Volt will be riding on forged wheels. Other vehicles will follow this trend, so start preparing yourself and your sales staff now to know where to purchase high quality lightweight wheels.

Be back next month for the conclusion of this series when we will hear from dealers like you, the people on the front lines.