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December 16, 2004 01:00 AM

Bandag to manage tire services for U.S. Xpress truck fleet

Lisa Aichlmayr, Tire Business staff
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    MUSCATINE, Iowa (Dec. 16, 2004) — Bandag Inc. has signed a six-year tire program agreement with U.S. Xpress Enterprises Inc. of Chattanooga, Tenn., beginning in January.

    The agreement covers about 5,500 tractors and 14,500 trailers, Muscatine-based Bandag said. U.S. Xpress is the fifth largest publicly owned truckload carrier. Under the agreement, Bandag will manage the entire fleet's wheels, tires, retreads and tire-related services.

    “Our tire management services will help U.S. Xpress better predict and manage tire costs and allow them to focus more time and resources on their core strength of meeting shipping customers' needs,” said Martin Carver, president, chairman and CEO of Bandag.

    Bandag did disclose anticipated revenues from the U.S. Xpress deal.

    Earlier this year, newly formed Yellow Roadway Corp. elected not to renew a similar tire outsourcing arrangement with Bandag, which had managed Roadway Corp.'s tire program since 1999. That deal produced about $27.5 million in revenue for Bandag, the company said at the time.

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