Modern Tire Dealer

JUN 2018

Magazine for the professional tire industry

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Page 9 of 87

M T D J u n e 2 0 1 8 8 N e w s / V i e w s T wo companies that have disrupted the tire industry in their own ways are partnering. Dealer Tire LLC is making "a significant investment" in Simple Tire LLC. But exactly what their collaboration will look like remains unknown. Financial terms of the deal were not disclosed. Dealer Tire is the Cleveland-based company that since 1999 has served as a national tire dealer and distributor to car dealerships from a network of 39 distribution centers. It was born from the Mueller family's retail tire business, which was founded in 1918. Simple Tire is the six-year-old business from Philadelphia that links existing tire dealers into a nationwide e-commerce platform. e tires consumers buy online are sourced from one of 3,000 warehouses of tire distributors or installers across the country. e list of installers includes both small shops and some of the biggest retail- ers in the country: Pep Boys — Manny, Moe & Jack, Monro Muffler Brake and Mavis Discount Tire. While Simple Tire is focused wholly on online sales — last year the company said it expected to exceed $500 million in sales in 2018 — Dealer Tire has its own e-commerce business on www.RightTurn. com with more than 8,500 registered dealers. "e business of selling tires continues to evolve," says Scott Mueller, partner and CEO of Dealer Tire. "We've built our business by consistently driving innova - tion in the tire distribution business and by providing automotive dealers with the tools and services they need to be successful selling tires. While our core business remains focused on support- ing the dealer channel and our OEM customers, our investment in Simple Tire is part of our effort to continue bringing innovation and technology to the tire industry." Brothers Andy and Josh Chalofsky developed the concept for Simple Tire while working in their family's brick and mortar tire store, along with their business partner Kenny Pratt. All three founders will continue to lead the com- pany. "Dealer Tire has built its business by developing an innovative position in the tire industry focusing on the OEM dealer channel," says Simple Tire CEO Andy Chalofsky. "Likewise, we've built our business by driving innovation in the growing e-commerce channel. We're confident this investment will help both companies, our customers and our sup - pliers continue to grow and evolve." "We've developed strong core expertise in logistics, technology, merchandising, marketing and more," says Mueller. "We will leverage our expertise and Simple Tire's capabilities to create new oppor- tunities for both companies. And as we move into our second century in the tire business, investments in companies like Simple Tire and Tyrata ensure that we remain an innovative leader in the tire industry's ever-changing landscape." In February Dealer Tire became a "leading" investor in Tyrata Inc., a com- pany that develops sensors and systems that monitor tread wear in real time. Dealer Tire was one of several investors who pumped $4.5 million into the sensor company. Dealer Tire's business has been sin- gularly focused on original equipment manufacturers and franchised automotive dealerships. On its website Dealer Tire says it is "revolutionizing the way people buy tires and care for their cars." When Modern Tire Dealer asked if Dealer Tire will ship, or consider shipping, tires from its warehouses to Simple Tire's network of independent tire dealers, here's what the company had to say: "We're very early on in the process and are continuing to develop our approach collaboratively with our partners." As for its relationship with Good- year Tire & Rubber Co. and Bridgestone Americas Inc. following the creation of TireHub LLC, Jill Marcotte, partner and chief supply chain officer for Dealer Tire, says, "We enjoy an exceptional working relationship with Bridgestone and Goodyear. ey have assured us that they value our partnership and that they will continue to fully support our business model. It's an exciting time to be in the tire business, and we're looking forward to continuing to adapt and evolve in an ever-changing landscape." Dealer Tire buys Goodyear, Dunlop and Kelly from Goodyear, and Bridgestone and Firestone from Bridgestone. It also offers Michelin, BFGoodrich, Uniroyal, Continental, General, Hankook, Kumho, Nexen, Pirelli, Toyo and Yokohama tires to car dealerships. Only Kelly and Uniroyal are non-OE brands. e company says it serves the fol- lowing vehicle brands: Audi, Hyundai, Infiniti, Jaguar, Kia, Land Rover, Lexus, Mazda, Mercedes-Benz, Nissan, Rolls- Royce Motor Cars, Toyota, Volkswagen and Volvo. Notably absent is Chrysler/ Fiat (FCA), which was listed as a preferred vendor last year. – Joy Kopcha ■ Dealer Tire invests in Simple Tire THESE TWO COMPANIES WANT TO KEEP INNOVATING 'WE ARE CONTINUING TO DEVELOP OUR APPROACH COLLABORATIVELY WITH OUR PARTNERS.' — Dealer Tire

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