TEQUESTA, Fla. (Nov. 9, 2010) — The Independent Tire Dealers Group (ITDG) L.L.C. is declaring 2010 a record year for itself and has expanded into three states, bringing its geographic footprint to 25 states.
Through three quarters, ITDG added 12 tire dealers operating 31 locations, according to ITDG President and CEO Michael Cox. The buying group expanded into three new states: Texas, Arkansas and Pennsylvania.
ITDG now has a total of 125 members representing 341 tire and service center locations.
Mr. Cox declined to disclose the group's profit but said it would be a “record” payout in dividends to members. Total member purchases also have soared 51.6 percent through the nine-month period compared with 2009.
“We knew tire demand was going to rebound, we just didn't know how much,” Mr. Cox said of increased tire purchases. “A lot of the competition has fallen by the wayside. The small independent that couldn't make it through, then you have the car dealerships. A lot of them are gone. When those bays go away, people are still driving their miles and keeping their cars. That certainly equates into demand, and there's been some pent-up demand.”
He said 2009 was the only year ITDG saw a downturn in purchases through the group, and he attributed that to the loss of AmPac Tire Distributors Inc. as a supplier following its acquisition by American Tire Distributors Holdings Inc.
ITDG said it added vendors in 2010 and two key ones are Cooper Tire & Rubber Co. and Michelin North America Inc.'s Tire Centers L.L.C. subsidiary.
The buying group also announced that it updated its website, and that ITDG's captive insurance company hired Jasmeen Ahdi Ubhi as in-house legal counsel and risk manager. The company, Independent Innovative Captive Insurance Co. Inc., also is contracting with Employer Support Group to focus on claims resolution.