Magazine for the professional tire industry
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MTD October 2014 Your turn Dealers speak out on the efects of another possible tarif on imported Chinese tires Each month we ask members of our National Advisory Council (NAC) a question or questions on a current hot topic. Tis month we asked, "Tere is talk that another tarif might be levied on tires imported fom China. How do you feel about this? Have you pre- bought any tires in anticipation that this legislation might become a reality?" Here are some of their comments. 1. We have purchased tires in advance of the anticipated tarifs. Initially the tarifs improve margins, however, the consumer is hurt and perhaps the image of our industry as well as the general public is usually not aware of issues such as this. What is the real beneft to those pressing for the tarif ? Te targeted product is rarely produced domestically, thus jobs or employment concerns are really muted. 2. We have increased our Chinese inventory slightly. I have no idea how much or when, there will be something, maybe a small countervailing duty or a much larger anti-dumping fee. How can you react to something that isn't currently defned? 3. I have been absolutely against it. Te last round only opened the door for all tires to increase in price and the loser is the buying public. Te winners are the unions and the U.S. government. Afer all, who gets the money from the tarifs? As a manufacturing nation, we beter get our act together to compete with the rest of the world and stop crying when things are "not fair." We need to work smarter, not get into protection mode for they, too, will do the same. Te Chinese government subsidizes their product, what is wrong with the U.S. doing the same? Tat way the consumer wins! Hallelujah! 4. If the Chinese government is subsidizing manufacturers and brokers, tire pricing on units being imported to the U.S., and creating unfair competition, we should have a tarif, or we should have the diplomatic will to insist that these practices be stopped. We don't have any diplomatic willpower avail- able in this administration, so I assume we will get the tarifs. Problem is, the consumer pays the bill, and every tire company on Earth gets to have price increases again. I'm buying extra tires because the price certainly isn't coming down. 5. I am extremely happy that the tarif is coming. Te Chinese have pilfered technology from so many diferent industries to fuel their rise as an industrial super power. Te fact that we as a country have been forced (because of low-priced competi- tion) to contribute to their unethical methods infuriates me. I am not naive in thinking this will move all the jobs back to the U.S.A. Te fact that it will punish the Chinese in at least one sector of their subsidized manufacturing assault on the U.S. is enough to warrant the tarif. Te importers/brokers who rely completely on the Chinese for their products are geting what they deserve. 6. I feel bad for the consumer. During the last tarif retail tire prices went up about 25%. I feel our government can't ask for a tax increase because of the economy, so they institute a tarif for more hidden revenue. Shame on us! 7. Historically, tarifs have been disruptive to the market and, if tarifs are imposed again, they are again likely to be disruptive. Tarifs are felt in the market where applied and ofen afect other markets. We have not pre-bought any tires in anticipation to this legislation but are ever-mindful of pending legislation as we make our purchasing decisions. 8. I can understand the clamor for the tarif, but the result will be increased pricing for the consumer. I believe the U.S. manufacturers will only use this to increase prices and the net efect will not change the amount of imports. Online players have price advantage Dear Editor: Great article on "Mastering the fne art of pricing" by Wayne Williams in the July issue. One additional point on pricing concerns the pressure on indepen- dent tire dealers to have competitive prices vs. online players. As you know, more and more consumers are look- ing at buying or geting information online, including prices. When talking to independent tire dealers, I have found it seems very challenging for them to tune their prices at the same speed and accuracy of online players. Eric Chaniot, CEO Tire Intelligence Charlote, N.C. See Williams' 50th column writen for Modern Tire Dealer in our November issue. -Ed. ■ Join Modern Tire Dealer's National Advisory Council Each month, Modern Tire Dealer is guided and infuenced by a select group of readers — members of our National Advisory Council. Tese members' opinions are the heart of the monthly Your Marketplace column, compiled by industry analyst Nick Mitchell. If you'd like to join this prestigious group, please let us know. We'd love to hear from you. Contact Editor Bob Ulrich at Bob.Ulrich@bobit.com or call (330) 899-2200, ext. 11. 90 90