FORT WORTH, Texas-McGriff Treading Co. Inc. will have access to a new distribution channel for its retreaded commercial tires, as well as new truck tires, as it teams up with PHH Vehicle Management Services' network of more than 3,000 truck stops. Fort Worth-based PHH Vehicle Management Services, which changed its name from NTS Inc. in June, provides about 8,000 North American motor carriers with fleet management services and a credit/service card that is accepted at 3,300 independent truck stops around the country.
Under the arrangement with Cullman, Ala.-based McGriff, PHH now distributes new Toyo-brand truck tires and Hawkinson and Bandag retreaded tires to truck stops and motor carrier firms.
The companies did not release their projections for tire sales to the truck stops, but a McGriff spokesman said the deal will significantly increase the retreader's revenues.
``The ability to offer our retread tires through the PHH network of truck stops gives our customers easier access to quality retreads over-the-road and creates a new venue for increased sales,'' according to Jeff Wilson, director of marketing and new business development for McGriff. ``...With PHH, McGriff can give a higher degree of support to our fleet customers than ever before available.''
The PHH arrangement is McGriff's first venture into truck-stop distribution. McGriff operates its own commercial service locations in Alabama and Tennessee and distributes to independent commercial dealers in other states.
``We're geared to providing our products in service locations,'' Mr. Wilson said, adding that truck stops, with their 24-hour service operations, are a natural fit for McGriff.
The company hooked up with PHH so the commercial dealership wouldn't have to approach truck stop chains individually, Mr. Wilson explained.
PHH and its clients also expect to benefit from the additional sales the tire program will generate.
``Providing tires to carriers for their contingency needs supplements the profits of truck stop repair facilities and increases the potential for more fuel sales,'' said Tommy Andrews, PHH senior vice president and general manager.
Under its tire program, PHH said carriers will have a wider selection of brands than currently available at truck stops. It also provides participating truck stops another product to sell and a chance to become a preferred stop for PHH card-carrying truckers.
In addition, PHH's fuel clients will be able to bulk order intermodal tires and retreads directly from PHH at wholesale prices.
In September, Michelin Americas Truck Tires inked an agreement for PHH to distribute Michelin truck tires to its truck stop network. MATT said the arrangement was in response to a need to provide 24-hour service and availability of its products on the road.
PHH said it is working with Michelin, Toyo Tire Corp. and intermodal manufacturers on a coordinated program promotion to national accounts designed to pull customers into PHH network locations. There are no current plans to expand the brand lines PHH now offers, the spokesman said.
However, PHH is eyeing a second phase to its tire program. After establishing the system of providing tires to meet truckers' over-the-road needs, PHH plans to supply bulk tire orders at preferential pricing to carrier clients who want to stock their terminals.
PHH Vehicle Management Services is a subsidiary of PHH Corp. of Hunt Valley, Md., a $4 billion corporation also involved in relocation and real estate services, and mortgage banking services.