Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • New round of Paycheck Protection Program funding opens
      Vaccine may usher sense of normalcy
      Cover-up: More retailers requiring face masks to curb COVID
      USW alleges COVID-19 violations at Kumho plant
    • Stengel promoted to president of NAPA parent Genuine Parts Co.
      Former auto exec Tyrone Jordan joins Cooper board of directors
      Bridgestone crafts virtual city to showcase sustainable-mobility initiatives
      Ford, Hyundai earn 2021 top North American vehicle honors
    • New round of Paycheck Protection Program funding opens
      H&H broadens precure OTR business with Continuum mold acquisition
      Apollo to raise prices of Vredestein brand, effective March 1
      Taiwan tire makers propose settlement of import duties case
    • Gary Price to head Love's Truck Care operations
      TA opens 6th Oregon location, bringing 50 jobs to area
      Love's opens Speedco shops in Ariz., Calif., Ga.
      TIA adds more Spanish language training
    • New round of Paycheck Protection Program funding opens
      Taiwan tire makers propose settlement of import duties case
      Wireless auto data debate continues
      World rubber demand in 2021 to recover to 2019 levels — IRSG
    • Point S Canada adds 61 stores to network in 2020
      New round of Paycheck Protection Program funding opens
      Ferentino Tyre opens Sri Lanka plant; eyes exports to U.S., Europe
      Sailun to expand Vietnam plant capacity over three years
    • TGI secures Cosmo-brand naming rights at Fla. race track
      Firestone Grand Prix of St. Petersburg postponed until April
      MotoGP extends Dunlop race tire contract through 2023
      Revived Yokohama Drivers Cup to feature Ferrari, Porsche models
    • Kumho launches commercial LT, performance tire lines
      The new One: Nokian unveils all-season passenger tire
      Ford, Hyundai earn 2021 top North American vehicle honors
      BKT expanding its ATV/UTV lineup with Sierra Max Pro radials
    • Point S Canada adds 61 stores to network in 2020
      J.D. Power survey: Quick greeting key to customer satisfaction
      Apollo to raise prices of Vredestein brand, effective March 1
      Marko Ibrahim promoted to president, Bridgestone Retail Operations
    • Point S Canada adds 61 stores to network in 2020
      J.D. Power survey: Quick greeting key to customer satisfaction
      ASE opens registration for upcoming certification testing
      Bolt On, Global Payments aim for easier text payments for auto repairs
    • Denver's Brian Sump named AAPEX Shop Owner of the Year
      DUB, TIS Wheels founder Myles Kovacs is SEMA Person of the Year
      AAPEX: Using social media to promote your business
      AAPEX: Road trips trending, commuting on the wane
    • Vaccine may usher sense of normalcy
      2020 Review: PPP loans give boost to small businesses
      Latest COVID relief bill includes $325B in small-business support
      AAPEX: Do more cars in the shop mean more profit?
    • Apollo to raise prices of Vredestein brand, effective March 1
      Taiwan tire makers propose settlement of import duties case
      Kumho launches commercial LT, performance tire lines
      Michelin completes rigid dump-truck tire lineup
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      Choosing the right balancing equipment
      Safety tips for wheel balancing
      An introduction to wheel balancing
    • Video: Demounting
      Demounting Equipment
      Making rims ready for a tight seal
      Tire changer types, tips and trends
    • Video: Safety
      Making friends with OSHA
      Ergonomics on the shop floor
      Customers
    • Video: Tire Repair
      Tire repair: Shining a light on visual inspections
      Staying safe when repairing a tire
      Essential tools, materials and equipment for tire repair
    • Video: TMPS Service
      Decoding sensor data for TPMS diagnosis
      Replacement TPMS sensor overview
      The life-saving work of TPMS
    • Video: Training
      Advantages of apprentice program partnerships
      Options and resources for CE tech training
      Internship ideas to attract tech talent
    • Video:Vehicle Lifting
      All types of lifts for all types of work
      Tips and recommendations for lifting safety
      The gravity of proper lift points
    • Video: Wheel Torque
      Using torque sticks to speed service times
      The danger of too much, too little torque
      The importance of torque specifications
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
April 28, 2014 02:00 AM

A detailed look at China's effect on N.A. tire industry

Bruce Davis
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Tire Business staff AKRON—China's impact on the North American tire industry is huge—the numbers bear that out—and getting bigger. As of 2013, nearly one of every four passenger tires, one of every five light truck tires, and one of every three medium truck tires sold in the U.S. aftermarket was built in China.

    Quite of few these, it must be noted, are familiar private and/or associate brands, but a substantial and growing percentage are brands owned or controlled by Chinese tire makers or offshore distributors. (See chart on page 13 for details on Chinese imports over the past decade.)

    The trend is continuing thus far in 2014, with passenger, light truck and medium truck tire imports from China up 15, 47 and 10 percent in the first couple of months over 2013. Overall, the consumer tire aftermarket is expected to be up only slightly this year, according to the Rubber Manufacturers Association's most recent forecast, with the commercial sector possibly declining a percentage point or two.

    The distribution of tires from China falls into several categories, ranging from those Chinese tire manufacturers with their own import/distribution companies in the U.S. to those with designated independent importers/distributors—either with or without their own North American distribution assets (see lists on pages 21 and 24) —to those that ship containers to those customers with adequate lines of credit willing to take the risk of being labeled the “importer of record.”

    Roughly half of the 350+ brands on sale in the U.S. are sourced from China, with roughly 50 to 60 of those owned or controlled by the Chinese manufacturer or a foreign trading company. Establishing a brand name has become more important for the leading Chinese manufacturers, a strategy reflected in some companies' decisions to establish subsidiaries in North America and develop sales and service networks to back up their brands.

    One example of building brand identity: TBC Corp. and Dynamic Tire Corp.—the U.S. and Canadian distributors of the Sailun brand—staged ride-and-drive events the past couple of years in an effort to show potential dealer customers that the Sailun brand performs equal or nearly equal to more well-known American, European or Japanese brands.

    At these events, and in conversations with other distributors of Chinese brands, executives often repeat what's becoming a mantra for the Chinese industry: It's not that the tire is built in China, it's just that the factory—often among the most modern worldwide—happens to be located in China. Without supplies from China, the private brand business in North America would be a shell of what it is today. (See comments in separate stories in this section for more details.)

    Delving a bit deeper into the import data, however, shows that nearly two-thirds of Chinese-sourced passenger tires are in 13- to 15-inch rim diameters—perhaps not surprisingly—but also that more than one-half of high-performance tires imported into the U.S.—tires with rim diameters of 18 inches and larger—are from China. The average declared value of those larger diameter tires, however, was just $58.95, according to U.S. Commerce Department data.

    Collectively, the value of consumer and commercial tire imports last year hit $11.7 billion, up 4.5 percent over 2012. Of that total, $3 billion was for Chinese-sourced products. The tire industry trade deficit—value of imports minus value of exports—was $7.72 billion, with nearly half that attributed to China.

    Among individual companies with ties to China: China Manufacturers Alliance L.L.C. (CMA) put into service recently a West Coast distribution center in Rancho Cucamonga, Calif., designed to support customers with shipments of Double Coin and other CMA brands, including the Warrior car tire line being launched this year.

    “We've invested in the latest building innovations to construct an energy-efficient and technologically advanced distribution center,” said CMA Vice President Aaron Murphy at the opening of the 129,000-sq.-ft. facility. The new warehouse was designed for optimized tire distribution, CMA said, with customized and por-table racking systems that provide multiple storage combinations at full capacity, a wireless mobile security monitoring system as well as dock-high and grade level bay doors.

    The center opens as CMA prepares to launch the Warrior brand of passenger tires that CMA parent Double Coin Holdings is building at a plant in Wuwei, Shandong Province, China, it co-owns with Group Michelin. Shipments of the Warrior brand will start with the R29, a touring all-season tire featuring a symmetrical tread design, and the Warrior R30, a high-performance all-season tire with an asymmetrical tread pattern.

    The company plans eventually to add light truck sizes to the line. Monrovia, Calif.-based CMA operates a second warehouse in Memphis.

    CMA's other brands are Bluestar, Dynacargo, Dynatrail and Superhawk. c c c Giti Tire USA Ltd. is stepping up marketing activities on several fronts to improve the image of its primary brand, GT Radial. Foremost among these are recent decisions to establish a research and development presence in the U.S. and get active in motorsports, beginning with Formula Drift Holdings L.L.C.

    On the R&D front, Giti hired Hamid Aboutorabi—a 23-year veteran of the tire industry, including time in research and engineering with Kumho America Technical Center and Goodyear—last fall to head up its efforts to set up a technical base in or near Akron.

    To date the company has hired four technicians to work in the new center. Mr. Aboutorabi reports to Phang Wai Yeen, executive director, R&D, at the parent company, and Herve Richert, executive director, sales and marketing (international) and president of Giti Tire (USA). Julianto Djajadi, executive vice president, business operations for Giti Tire (USA), said at the time: “This is not just a marker for our commitment to North America, but to improving our products and credentials worldwide.”

    On the motorsports front, Giti sees Formula Drift as an “ideal platform for demonstrating the technology and performance of the GT Radial brand to North American drivers,” said Armand Allaire, vice president of marketing for Giti Tire USA.

    Giti Tire USA will be one of eight tire brands active this year in Formula Drift, which is running seven events in 2014. The others are: Achilles, Falken, Hankook, Kenda, Max-xis, Nitto and Yokohama. The R&D and motorsports engagements are in addition to the launch of Tread Academy, an online training program introduced last year to inform North American tire dealers about GT Radial tires and tire trends.

    The program is now available in both English and French and is supported by the Giti Tire (Canada) Ltd. as well. c c c China's Qingdao Sentury Tire Co. Ltd. has renamed its Miami-based Americas sales and marketing subsidiary Sentury Tire Americas to reflect the company's “transformation to a global tire company.”

    The unit, in business since 2007, previously operated as Sentaida International Inc., marketing the parent company's Delinte and Landsail brands. Max Wee, director of sales for Sentury Tire Americas, said the Sentury Tire name is part of the parent firm's worldwide brand strategy and is used already in other countries.

    “The primary reason for the name change is to better communicate our company and brand to our distributors and dealers,” Mr. Wee told Tire Business at last year's Specialty Equipment Market Association Show in Las Vegas.

    “Going forward we'll market our Delinte and Landsail product brands under the Sentury Tire Americas corporate brand umbrella,” he added, noting the Landsail brand is targeted at the more mainstream touring car/SUV categories while Delinte is geared to a “younger, hipper performance-oriented” consumer. Landsail, for example, is Sentury's OE brand in China, Mr. Wee said.

    Under development and scheduled for launch this year are run-flat versions of both Landsail and Delinte models, Mr. Wee said. Sentury Tire maintains warehousing at its headquarters in Miami and in California.

    Qingdao Sentury—originally Sentaida Group Co. Ltd.—inaugurated production at its sole plant in Qinngdao in 2009, with capacities for passenger car and aircraft tires. The plant opened with an annual capacity of 9 million tires, which is being expanded to 15 million car/SUV and 80,000 aircraft tires. A third phase expansion, slated for 2015-18, will more than double capacity, the company said.

    To reach this reporter: [email protected] crain.com; 330-865-6145.

    Related Articles
    Hankook concepts earn design 'trifecta'
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • List Rental
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION