2019;t actually take effect until June 2007.
The TREAD Act-mandated FMVSS 139, which covers all radial tires for passenger vehicles, trucks, buses and trailers weighing less than 10,000 pounds, includes for the first time all P- and LT-metric light truck/SUV radials, load range C, D and E. It also covers limited production radials, as well as winter and "deep tread" radials.
However, FMVSS 139 exempts bias ply, small trailer and non-pneumatic spare tires, as well as retreaded tires. Those will continue to be covered by FMVSS 109 and other standards as applicable. Specialty tire manufacturers like Denman Tire Corp. and Hoosier Racing Tire had sought exemptions for their short production bias-ply and radial race tire products.
"TIA is pleased with the fact that bias-ply tires and retreads are exempt from this final tire testing rule," said Becky MacDicken, TIA’s director of government affairs. "However, we remain concerned that snow and specialty tires are included in the standard. We fear that many specialty and snow tires will not be able to pass these tests and will be removed from the market." RMA officials said that it was still studying the final rule.
FMVSS 139 will require:
®′ New high speed endurance testing, with all tires being tested at 87, 93 and 99 mph for 30 minutes at each speed, with no resulting cracking or evidence of tread separation. The current test is run at 75, 80 and 85 mph.
®′ New durability standards require tires be tested at 75 mph for four hours at 85% maximum load capacity, followed by six hours at 90% load capacity, and 24 consecutive hours at 100% load capacity.
®′ New low inflation pressure testing in which tires are run for 90 minutes at 20 psi, which NHTSA said is the minimum level at which required tire pressure monitoring systems will warn drivers.
Anticipated provisions for testing road hazard impact, bead unseating and tire aging were set aside pending additional study. NHTSA claims it needs more time to develop relevant requirements, though it did not commit to creating new standards at all.
NHTSA estimated that FMVSS 139, as written, would cost tiremakers between $3.6 million and $31.6 million annually to implement and maintain. At press time, tire companies had not weighed in with their opinions of the new standards, or cost estimates.
NHTSA also estimated that from 5% to 11% of all tires presently on the road would have to be redesigned in order to meet the new test requirements, significantly lower than the 33% it estimated when it issued its rule proposal in March 2002.
NHTSA will entertain reconsideration of aspects of FMVSS 139, and interested parties have until Aug. 11 to file any petitions.
Goodyear-USWA Talks Break Down; War of Words Heats Up
No news appeared to be good news at press time, two weeks after official talks broke down between Goodyear Tire & Rubber Co. and the United Steelworkers of America (USWA) over a new master contract. The two sides, however, traded public barbs that indicated they remained far from an agreement.
The union had set a deadline of June 27 to conclude negotiations, and left the bargaining table in Cincinnati after rejecting a late contract proposal by Goodyear. Contracts at three additional Goodyear plants expired July 5, and there were heavy rumors the USWA would call a strike with the expiration of those pacts. Neither side took any action, though, and despite USWA denials there were reports the two sides continued to hold talks.
Eleven Goodyear plants have been working without a contract since Apr. 19, and the USWA would like to tie all 14 Goodyear facilities into a new master contract. The USWA represents some 20,000 plant workers and another 22,000 Goodyear retirees.
Things got heated June 30 when Jon Rich, president of Goodyear’s North American Tire division, sent an e-mail letter to company employees voicing his "disappointment" at the lack of progress in the negotiations.
"The contract offer we put on the table would achieve the joint goals of saving Goodyear and provide associates with competitive benefits," Rich wrote. "The offer was fair.
"One of the key issues is job security. We have significantly more tire manufacturing capacity than we do customer demand, " Rich wrote. "Our offer would have provided unprecedented job security. But at the same time, no labor agreement can guarantee full employment. Capacity reduction is one of the key steps in returning Goodyear to a strong and financially secure company that will provide jobs for future generations to come.
"Continuing the current course is not an option. At the same time, the company is not in a position to take a long strike."
The USWA response was swift, and claimed Rich misled Goodyear workers. "You say that the company’s proposal would offer unprecedented job security. However, you neglected to mention that your proposal is a sham because it fails to cover two plants and more than one-third of the workforce while containing loopholes that would allow you to idle or close any plant at any time," USWA officials wrote July 1 in response.
"We cannot stand by while you attempt to profit from the North American marketplace by attacking its standard of living. We will not be a willing partner to attempts to take money out of the pockets of our workers and retirees so Goodyear can run to China and build facilities to replace our production," the union said.
Then, in a July 11 statement, the USWA hinted that talks were at an impasse. "It is time to move on to a different approach – no more business as usual from company leadership. Employees understand that they will have to contribute to restoring the company to success, but we will not pay the costs necessary to offset the repeated management blunders and miscalculations. A new contract will only be acceptable under OUR terms, not those of management."
NHTSA Nixes Further Steeltex Probe,
Class Action Suit Still in Court
After months of additional study and fact-gathering, NHTSA rejected a petition by California attorney Joseph Lisoni to reopen a formal investigation into tread separation allegations involving the Firestone Steeltex line.
Lisoni filed a class action lawsuit last year against Bridgestone Americas Holding calling for the recall of some 39 million Steeltex R4S, R4SII and AT, and alleging that BAH knew there were tread separation problems with the line and hid that information from the public.
In rejecting his petition, NHTSA said Lisoni failed to demonstrate that a failure rate trend existed. "This decision is based on the fact that an enormous population of tires is at issue whose failure rate is lower than that of peer tires used in similar applications, and has changed little since NHTSA’s first investigation closed."
NHTSA first launched a defect investigation of the Steeltex line shortly after the August 2000 recall of 6.5 million Firestone Wilderness tires. It closed that investigation in April 2002 with no findings.
BAH officials were pleased by the June 16 ruling. "We’re not surprised by the decision because it reaffirms what we have being saying all along: Steeltex tires are performing well," said BAH spokesman Dan MacDonald. "NHTSA looked at all the facts in performing a very thorough analysis of the Steeltex tires. The conclusion of the NHTSA Office of Defects Investigation speaks for itself."
Lisoni could not be reached for comment. In other published reports, Lisoni said that he was disappointed in the decision, but felt it aided his suit because BAH could no longer claim he had not exhausted other remedies.
On June 3, Lisoni did file a motion to certify a nationwide class of Steeltex owners. If approved by the California state court, the move would allow Lisoni to represent some five million consumers in a formal class-action case. At press time, there was no word on the disposition of his motion.
Hankook Wins Prized OE Fitment on New Ford F-150 With DynaPro
Hankook Tire Manufacturing Co., parent of North America’s Hankook Tire America Corp., won a multi-year contract to supply tires for Ford’s flagship F-150 pick-up truck, its first North American OE supply deal for road tires.
The all-new F-150, launched in June by Ford and considered by auto industry analysts as a vital product for Ford’s future, will sport Hankook DynaPro RH03 and DynaPro AT RF08 tires in sizes P235/70R17 and P235/75R17. There was no word whether Hankook would hold standard or optional positions on the various F-150 models Ford offers.
The Ford tires will reportedly be produced at Hankook joint venture plants in China. In the past, Hankook supplied mini-spare tires to Ford for its Focus and Escape models.
"Supply to the world´s top automaker should enhance the brand recognition of Hankook in the global market," said Cho Choong-Hwan, chief executive of Hankook Tire Manufacturing, in a statement released to Asian media.
Two Deals Give Del-Nat Exclusive Truck Line, Chinese Manufacturing
Del-Nat Tire Corp. recently struck two deals with tiremakers in China that give the U.S. private brander an exclusive medium truck tire line, and helps Del-Nat establish direct relationships with other Chinese tire producers.
The Memphis-based private brander is now the exclusive North American distributor of Long March brand medium truck radials, which are produced by Chaoyan Long March Tyre Co., headquartered in Chaoyan, China. Del-Nat’s Aaron Murphy, vice president of commercial products, said Long March tires are "widely accepted throughout Asia" and are a "product that has proven it can deliver."
In addition, Del-Nat and Chaoyan Long March Tyre will work together to develop "new products and sizes for North America."
Separately, Del-Nat also struck a deal with Superstone Tire Co. to "provide Del-Nat with consulting services for future development of products, services and logistics within mainland China."
Superstone, formerly known as China Industrial Manufacturing Group, represents some half dozen Chinese tiremakers that produce its Superstone brand tires under license. Superstone has offices in China as well as in Old Bridge, N.J.
Murphy said the Superstone deal "not only provides Del-Nat with exclusivity for North America from certain factories but also capitalizes on two companies’ strengths to pursue new products and sizes for North America with the direct involvement of Del-Nat."
TIA Launches Web-Based, Interactive Training and Certification Program
TIA’s long-planned Web-based tire service technician training and certification program will launch this summer, as scheduled, an education effort the association said is "unprecedented" in the tire industry.
The Basic Automotive Tire Service Training & Certificate Program (ATS) is intended to reach both new hires and experienced tire techs at more than 40,000 retail tire dealerships across North America.
TIA developed the unique program with the input of focus groups from large and small U.S. and Canadian tire dealers, who provided practical insight on technician training needs and application, and helped polish the final program. TIA decided to offer the entire program via the Internet to make it easier for dealers to administer the program in-house, at times convenient to the dealer and his staff, and without the hassle of added paperwork.
Delphi Integrated Service Solutions (ISS) helped TIA solve dial-up connection speed issues by combining it with an interactive CD.
The Web-based component of the ATS also allows dealers to monitor and download technician activity, and the 12-month "unlimited" access subscription to the Web-based portion of ATS is included in every package, so each location can train technicians as many times as necessary during the subscription period.
The ATS self-study format will be available in VHS and DVD with a technician workbook and interactive CD. For more information, e-mail a request and mailing address to [email protected] or call 800-426-8835.
Strong Export Performance Brings Earnings Revision From Bridgestone
Buoyed by a "substantial increase" in exports to North America and Europe, a stronger-than-expected Euro, and higher-than-anticipated sales demand worldwide, Bridgestone Corp. boosted its sale and earnings projections for the first half and full year of 2003.
Bridgestone said it anticipates posting first half sales of $9.2 billion, up 3% over earlier predictions, and net income of $243 million, up some 32% from its original forecast. For the full year, Bridgestone officials said the company expects to post total 2003 sales of $19 billion and net income of $645 million, 10% higher than its initial projections made this past February.
California Looks to Disbar Lawyers
in Consumer Protection Scam
The California Bar Association is working to disbar three of its own who stand accused of extorting money from small businesses – including tire dealers and auto repair shops ®“ by abusing the state’s consumer protection laws.
Damian Trevor, Allan Hendrickson and Shane Han, partners in the Beverly Hills-based Trevor Law Group, were suspended in late May by the California Bar when it began disbarment proceedings against the trio.
In addition, the state attorney general’s office has begun a criminal investigation into the practices of the three lawyers, and is investigating at least four other law firms accused of abusing the state’s Unfair Competition Law.
"We’re looking for restitution for their victims and civil penalties," Tom Dresslar, of the state attorney general’s office, told the Associated Press. "Even if they’re disbarred, we’re not going away."
California’s decades-old and highly controversial Unfair Competition Law allows consumers to file lawsuits, regardless whether they were actually directly harmed by the alleged wrongdoing (see First Off, Tire Review, October 2002). Dozens of Southern California tire dealers and auto repair facilities were targeted by the Trevor Law Group and other law firms, which would file or claim to file suits against them, then contact the unwitting dealers and shop owners looking to settle out of court. All told, the lawyers defrauded hundreds of dealers, repair shops and small restaurant owners out of thousands of dollars.
According to reports, the Trevor Law Group filed between 2,000 and 5,000 suits against small businesses on behalf of the "California Watch Enforcement Corp.", which state officials say was a sham company the law firm created.
In examining 21 cases filed against tire dealers and auto repair shops, state bar court Judge Richard Honn found the lawyers failed to investigate allegations and pursued cases "from a corrupt motive." In total, he found 71 instances of "moral turpitude."
Canadian Repair Maker Sets Truck, OTR Training Sessions
Tap Rap International, the Quebec-based tire repair product supplier, has set its truck and OTR tire repair training schedule through early 2004. The training sessions consist of one day of classroom instruction followed by two days of hands-on training.
Basic truck and OTR tire repair training sessions are set for Sept. 10-13 and Nov. 19-22 this year, and Jan. 21-24, 2004. Advanced OTR tire repair sessions are set for Sept. 24-27, 2003, and Mar. 3-6, 2004.
For more information or to schedule a session, contact Gilles Wauthy at 877-687-5133 or e-mail [email protected].
Tire Price Increases On The Horizon
At press time, four tiremakers had announced prices increases for the second half of the year. Effective July 1, Continental Tire North America boosted prices on its Continental and General brand replacement consumer tires, and on its private brand business, by an average of 3%. Also kicking in July 1 was a 3% to 5% increase by Michelin North America on "selected" Uniroyal brand consumer tires, and on its private and associate brands.
Cooper Tire & Rubber said it was increasing prices between 2% and 4% on its major, associate and private consumer lines. And Bridgestone/Firestone North American Tire is increasing prices on its Firestone brand agricultural industrial and forestry tires by 3% to 5%, effective Sept. 1.
ASE Launches wheel/tire specialist test program
After more than two years of work and input from every segment of the tire industry, ASE (National Institute for Automotive Service Excellence) will launch its new Custom Wheel and Tire Specialist certification program next May. Part of the five-part SEMA Installer Certification Program, the new Custom Wheel and Tire Specialist certification program will offer two annual certification tests – in May and November ®“ through more than 700 test centers across North America.
The Custom Wheel and Tire Specialist (Z5) exam will be offered on the same date and at the same locations as the other SEMA certification exams.
Resource material from manufacturers, TIA, RMA and TRA can be used to prepare for the custom wheel and tire test. The prerequisite for earning certification credentials is a minimum of two years of hands-on experience in the tire and wheel industry.
To learn more about the SEMA Installer Certification Program, contact Ellen McKoy, senior director of dealer relations at SEMA, 909/396-0289, ext. 148, or e-mail to [email protected]., or go to www.sema.org/certification.
Reports: Goodyear, Bridgestone in talks with Amtel
The Moscow Times and other news sources have reported that Goodyear Tire & Rubber Co. has been in talks aimed at either acquiring Amtel Holding Co., which has controlling interest in four tire plants in Russia and the Ukraine, or working out an off-take agreement to produce Goodyear branded tires for export.
Amtel Holding already has a production agreement with Nokian Tyres plc, which is part owned by Bridgestone Corp. Bridgestone has also reportedly been in talks with Amtel. The Russian tiremaker reportedly holds a 28% share in its home market, and its four plants have a total capacity of some 14 million tires per year. Goodyear presently has an off-take agreement with JSC Jaroslavl Tire for the production of winter tires for the Russian market, according to reports, and has expanded its Moscow sales office.
Carmakers Continue to Fight Right to Repair Law
Automakers have again rejected further discussion on formal Right to Repair legislation, and have no intention of agreeing to "further specifics or third-party enforcement," according to TIA, which conducted two meetings with the Alliance of Automobile Manufacturers (AAM) and the Association of International Automobile Manufacturers (AIAM) recently.
According to TIA, the two groups said they were already "doing everything to get (repair) information out to the aftermarket" under its non-enforceable agreement with the Automotive Service Association (ASA). The Right to Repair Coalition, of which TIA is a member, held meetings with AAM and AIAM to further outline its efforts to seek congressional passage of the Right to Repair Act, developed to assure automakers provide tire dealers and independent repair shops with affordable access to repair information and tools necessary to service all makes and models of passenger vehicles.
For more information on the Right to Repair Act, go to www.tirereview.com.
Czech Tiremaker sets U.S. Office
Czech Republic agricultural and OTR tiremaker Mitas A.S. has established a subsidiary office in the U.S., and has appointed Zdenek "Dennis" Vavrik as president of the Upper Saddle River, N.J.-based Mitas U.S. Inc.
Vavrik will focus on building a dealer base in the U.S. Don Domiguez, marketing director of Import Associates, based in Clearwater, Fla., and former director of the Private Brand Tire Group, is assisting Mitas U.S.
Mitas A.S. produces bias and radial OTR and agricultural tires – replacement and OE ®“ at its plants In Prague and Zlin in the Czech Republic.
Ttrib seeks big boost with new member drive
The Tire Retread Information Bureau (TRIB), the non-profit association that has long supported the retreading and tire repair industries, has launched a significant membership drive. In a recent letter to TRIB members, Harvey Brodsky, the group’s managing director, asked members to actively solicit "at least one" new member in the coming months.
"We are totally dependent on membership dues for our financial support, but we simply do not have enough members to continue our important work," Brodsky said in his letter. "If each reader of this memo (obtains at least one new member) we have a fair chance of increasing our membership base, which is something we really need to do if we are to survive."
Currently, TRIB has some 370 members, including retreaders, tire companies and industry suppliers. The organization actively supports retreading and tire repair by participation in industry events, producing videos and other materials supporting the industries, monitoring and responding to negative news about retreading, monitoring legislative action regarding tire retreading and repair, and taking advantage of media opportunities to promote the industries and their products.
For membership information, contact TRIB at 888-473-8732 or visit its Web site at www.retread.org.
