New plants, new tires, new markets, new opportunities. Those were the key take-aways from Kenda Tire USA’s 2014 Distributor Meeting, the Reynoldsburg, Ohio-based tire company’s pre-SEMA Show/Global Tire Expo event.
Some 20 wholesalers gathered at the MGM Grand in Las Vegas to learn of fast-growing Kenda’s plans for the future. And they got an earful at Kenda’s very first distributor meeting.
Vice chairman and president Jimmy Yang shared news of Kenda’s growing commitment to the North American market with plans for extensive passenger radial tire capacity expansion, the addition of three new plants in China and Indonesia, and the planned arrival of Kenda brand radial medium truck tires in the next few years.
Most of those capacity plans had been shared earlier this year, but Yang emphasized the facilities and their flexibility to demonstrate Kenda’s commitment to growth and focus on the North American market.
“We are positioning ourselves as coming to the market with substantial benefits,” Yang said. But near- and long-term growth is clearly key for Kenda. Yang said the company should post global tire and tube sales of $1.2 billion, and targets $2 billion in annual turnover by 2020.
Currently, Kenda boasts passenger tire marketshare in the U.S. of 1%, and Yang expects to double that by 2018 and reach 5% a few years after that.
Getting there means extensive investment in R&D and new products, two things Kenda has focused on over the last 12 months with the addition of a dedicated R&D center in Akron, headed by tire engineering veteran Tom Williams as its new vice president of engineering.
Unveiled at the meeting was the Kenda Klever S/T, two planned 2016 products, and Kenda’s new associate dealer program – Kenda Traction. Designed for the SUV/CUV market, the Klever S/T, which replaces the Klever KR15, will be available in early 2015 in six initial sizes, with 20 more due later in the year.
Kenda targets the tire to carry a UTQG grade of 600AA and a 60,000-mile treadwear warranty. The Klever S/T has an asymmetric tread pattern that promotes handling, cornering and low noise, as well as a new all-season tread compound.
On the planning boards for 2016 are the first two all-new tires being designed at Kenda’s Akron R&D center: an all-season ultra-high performance and a LT-metric highway traction line.
The Kenda Traction associate dealer incentive program rewards Kenda dealers and distributors for purchases of at least 125 tires per quarter. Dealers will receive cash back on each unit purchased, as well as co-op money that can be used to purchase Kenda shirts, jackets and POS display materials.
The program starts Jan. 1, 2015, but dealer sign-ups will start in mid-December.
