Year in Review: Top Tire Business headlines of 2024

It's not too often that a story judged to be the top tire industry story of the year could be repeated in 12 months.

But that's what happens when America's largest independent wholesale tire distributor, with 2023 sales of $5.7 billion, announced it was seeking Chapter 11 bankruptcy protection — the second time in six years that American Tire Distributors Inc. (ATD) has done so — in October 2024.

ATD's move seeking bankruptcy protection is our top story of 2024.

According to ATD's voluntary filing on Oct. 23 in the U.S. Bankruptcy Court for the District of Delaware, the company estimates that it owes approximately $576.4 million.

Of the total amount owed, ATD said $341.2 million is owed to critical vendors. In addition, ATD estimates that there is approximately $62.2 million in aggregate amount due to foreign vendors.

The case will wind through the court at least into the first half of January, when the final bidder is named Jan. 13.

The bankruptcy not only affects ATD customers, but also its suppliers. ATD owes more than $300 million to three entities: Goodyear/Mickey Thompson ($127.7 million); Toyo Tire Holdings of America Inc./Nitto ($100 million); and Continental Tire the Americas Inc. ($81 million).

Others owed double figures in millions include Zhongce (ZC) Rubber, $51.2 million; Sumitomo North America Inc., $47.4 million; Pirelli Tire L.L.C., $44.2 million; Nexen Tire Corp., $26.2 million; Michelin North America Inc., $22.4 million; Bridgestone Americas Tire Operations, $19.2 million; and Hankook Tire America Corp., $14.2 million.

It's not every day when a tire distributor, especially one as large as ATD, has a new owner. But that outcome seemed destined in mid-August when ATD announced it had hired Michael Feder as interim CEO, replacing Stuart Schuette, who resigned after eight years.

Feder previously served more than 23 years at AlixPartners, where he specialized in "capital structure improvements, including chapter 11 proceedings."

In its latest step in the process, ATD entered into a "stalking horse" asset purchase with a group of its lenders including credit funds and accounts managed by four equity firms: Guggenheim Partners Investment Management L.L.C.; KKR, Monarch Alternative Capital L.P.; Sculptor Capital Management Inc.; and Silver Point Capital L.P.

They are collectively called the Ad Hoc Lender group.

A stalking horse purchase often is made to protect a debtor from unreasonably low bids for the assets. It generally sets a minimum price for a company's assets, used as the starting bid in a court-ordered auction. The stalking horse bidder makes a binding offer to purchase the assets, conditional on the company not receiving a better offer.

Among the debtors listed in the case are: American Tire Distributors Inc.; ATD New Holdings II Inc.; ATD Technology; Hercules Tire International Inc.; Terry's TireTown Holdings L.L.C.; The Hercules Tire & Rubber Co.; Tire Pros Francorp L.L.C; Tirebuyer.com L.L.C.; and Torqata Data and Analytics L.L.C.

ATD said it is operating normally throughout the sale.

The move will reduce ATD's debt by $1.3 billion and "significantly enhance its operational flexibility."

The future can be summed up in three letters for the Yokohama Rubber Co. Ltd.: OTR.

The Tokyo-based tire maker announced an agreement in late July to purchase Goodyear's off-the-road tire unit in a $905 million cash sale that significantly bolsters the Japanese tire company's OTR unit for the second time in a little more than a year.

In May 2023, Yokohama completed the $2.3 billion acquisition of Trelleborg Wheel Systems from Sweden's Trelleborg A.B., effectively doubling the size of Yokohama Rubber's off-highway tire business to better than $2 billion in sales annually.

The transactions are in addition to YRC's mid-2016 purchase of off-highway tire maker Alliance Tire Group (ATG), which bolstered group sales by around 20% within the next few years.

The sale of Goodyear's OTR unit was announced July 22. It is expected to close by early 2025.

With the sale, Yokohama will acquire Nippon Giant Tire Co. Ltd., which operates an OTR tire plant in Tatsuno City, Japan, as well as Goodyear Earthmover Pty. Ltd. in Australia, a retread plant in North Bay, Ontario and other "OTR assets at other plants and facilities around the world," including specialized tires for mining and construction.

Yokohama will integrate Goodyear's product line, which includes OTR tire sizes with rim diameters of up to 25 inches to larger tires with diameters of 49 to 63 inches, into its OTR portfolio, "expanding the value range of Yokohama Rubber's OHT (off-highway tire) business."

Sumitomo Rubber Industries Ltd. (SRI) ceased production on Nov. 7 at its 102-year old factory in Tonawanda, N.Y., its lone plant in North America.

The tire maker, citing its inability to make tires profitably there, ceased all production immediately at the Tonawanda facility, with related wind-down activities expected to be completed over the next 12 to 24 months. The shutdown affects around 1,500 employees.

SRI is keeping its North American research and development arm active, but it's unclear where that will occur. The company plans to dissolve Sumitomo Rubber USA L.L.C., the SRI subsidiary that oversees the plant.

"The closure follows an extended examination of the viability of the facility, following thorough analysis of various business complexities, including mounting material and logistics costs, dated infrastructure, intermittent financial performance, and changing market conditions," SRI said in a news release.

"The evaluation was undertaken as part of a broader strategy to ensure the long-term sustainability of the Sumitomo Rubber Group in the competitive international tire market."

The decision to close the plant comes three years after SRI committed $130 million to upgrade and expand the facility for more value-added tires. That project was designed to nearly double passenger and light truck tire capacity to 12,000 units per day and boost truck/bus tire capacity to 2,300 units a day from 1,600.

SRI is moving most of — if not all — capacity from the New York factory to its 18-year-old plant in Amati City, Thailand. It will supply the U.S. market almost exclusively from that factory.

All hope is not lost for a future SRI plant in North America: Hidekazu Nishiguchi, managing executive officer for SRI, told the Japanese financial community during the firm's third-quarter financials conference call that he believes "local production for local consumption is the best for the tire industry.

"Eventually, we will have factories in the vicinity of North America again. … We assume the environment will have changed considerably by the time we build the next one."

In January, the European Commission (EC) began an antitrust investigation into the European tire industry, covering new replacement tires for passenger cars, vans, trucks and buses sold in the European Economic Area.

The EC said it is concerned a group of tire manufacturers "may have facilitated or instigated the suspected price coordination," while allegedly using "public communications channels to collude."

The major tire makers known as those being investigated include Bridgestone Corp.; Continental A.G.; Group Michelin; Nokian Tyres P.L.C.; and Pirelli & C. S.p.A.

The EC called unannounced inspections "a preliminary investigatory step into suspected anticompetitive practices," and that inspections do not mean the companies have committed anti-competitive behavior.

The agency said a timeline on the investigation depends on several factors, "including the complexity of each case, the extent to which the companies concerned cooperate with the Commission and the exercise of the rights of defense."

In August, the ECO said it had conducted "unannounced inspections" at a consultancy firm in two European countries over those concerns It did not specify what entities had been the focus of its latest inspections.

The EC said it is concerned that the consultancy firm "may have facilitated or instigated the suspected price coordination" among tire manufacturers, while allegedly using "public communications channels to collude."

The EC said stakeholders "from the relevant national competition authorities of the member states where the inspections were carried out," accompanied EC officials in the inspections.

It's not too often when a major tire major replaces one of its top leaders.

But it's a once-in-a-century occurrence when the top three tire makers in the world, ranked by global sales, each name new leaders in North America in the same year. 

Goodyear, ranked third in the world, started the trend in January, naming former Stellantis N.V. Chief Operating Officer Mark Stewart as its next CEO and president, succeeding Richard Kramer, who announced in November, 2023 his intention to retire after 14 years as head of the Akron-based tire maker.

"I am honored and humbled to join Goodyear at such a pivotal time in its history," Stewart said in a news releasing annoucing his appointment. "I have deep respect and admiration for everything Rich and the Goodyear team have accomplished together. Goodyear is an iconic company with an unmatched brand, industry-leading innovation and significant opportunity for growth."

The world's No. 1 tire maker, the Michelin Group, announced in May that it had named Matthew Cabe as the next president and CEO of Michelin North America, effective Oct. 1.

He succeeded Alexis Garcin, whose next position within Michelin will be announced at a later date, the tire maker said. Garcin has been president since 2019.

Cabe served as senior vice president of the Michelin Group's automotive regional brands business line based in Budapest, Hungary since 2021.Prior to that, he held several marketing leadership positions for the North American passenger car and light truck business.

"I am confident in the future of our company as we continue to focus on bringing our sustainable mobility strategy to life — the critical balance of customer centricity, financial results, respect for the environment and empowerment of our people," Cabe said.

"This is an exciting opportunity to work with our team in the North American region to serve our customers and drive the business forward."

Finally, the world's No. 2 tire maker, Bridgestone Corp., completed the trifecta in late September, announcing a series of management changes that included the promotion of Scott Damon to vice president, senior officer and Bridgestone West CEO, in charge of Bridgestone's U.S. operations.

Damon succeeded Paolo Ferrari, who had served as an executive officer and Bridgestone West CEO since 2022. Ferrari left the company on Oct. 31.

On Jan. 1, Damon was to be promoted to executive vice president, executive officer of Bridgestone West CEO and global chief digital transformation officer.

Two other notable changes: Ex-Trelleborg Wheel Systems' top executive Paulo Pompei was named president and CEO of Nokian Tyres P.L.C. in mid-July; he will assume those roles on Jan. 1. He succeeds Jukka Moisio, who is retiring.

Yokohama TWS appointed Elio Bartoli to succeed Pompei as company president, effective Dec. 1.

That photo of a shovel overturning Mexican dirt was scene repeated several times this past year, as tire makers clamored to set up operations in North America.

Yokohama Rubber Co. Ltd. (YRC), Sailun Group Co. Ltd. Zhongce Rubber Group Co. Ltd. (ZC Rubber), ranked number 8, 12 and 9, respectively in global tire sales, each broke ground in Mexico in 2024, eyeing a larger share of the North American tire market.

On April 15, YRC broke ground April 15 on the $380 million passenger and light truck tire plant it is building on a 150-acre site at the Alianza Industrial Park in Saltillo, Coahuila.

The plant will open in 2027 with a rated capacity of 5 million tires a year.

"We stand here today in celebration and recognize the best employees and best customers in the world. Without their collective commitment, resolve and devotion to the Yokohama brand, today would not have been possible," Yokohama Tire Corp. President and CEO Jeff Barna said.

YRC has existing North American factories in Salem, Va., and West Point, Miss., in supplying tires to the North American market. It had discussed Mexico as potential manufacturing site since 2016. North America accounts for 26%, or $1.62 billion, of YRC's global tire-related sales revenue.

One month later, China's Sailun Group broke ground on $240 million factory in Guanajuato, a move the company said underscores its commitment to the North American market.

The state-of-the-art factory will have capacity for about 6 million tires annually. Sailun expects to expand on that capacity by as much as 1.8 million units.

Sailun is building the plant in a joint venture with Mexico's TD International Holding S.A.P.I. de C.V. The JV, to be called SL & TD Tire Manufacturing, will be 51% owned by Sailun's Singapore subsidiary, while local enterprise TD Mexico will own the remaining 49%.

"This expansion represents a significant investment in our future and reaffirms our commitment to providing top quality tires for the North American market and allows us to continue to diversify our product offerings," Peter Koszo, president of Sailun Group of Companies in North America, said in a statement.

Finally, in early August, ZC Rubber broke ground on a new tire manufacturing facility in Saltillo, Mexico.

The plant, which will represent an investment of more than $500 million, will be situated on nearly 150 acres in the Alianza Industrial Park, located about 150 miles from the U.S. border.

Production is expected to begin by the end of 2025, and the plant will have an annual capacity of 13.5 million passenger car radial tires and 50,000 tons of off-the-road products.

The company said the plant, its third outside of China, will benefit both the North American and Latin American markets, "providing customers with more efficient and high quality products and services."

A year doesn't seem to pass in the tire industry that doesn't include some sort of antidumping issues.

In 2024, it was truck-bus radial (TBR) tires made in Thailand that came under scrutiny. In November,  the U.S. Department of Commerce agreed to issue elevated duties on imports of TBR tires from Thailand, affirming an earlier U.S. International Trade Commission (ITC) decision that antidumping claims against Thailand tire suppliers were valid.

On Nov. 8, the ITC determined "a U.S. industry is materially injured by reason of imports of truck and bus tires from Thailand that the U.S. Department of Commerce has determined are sold in the United States at less than fair value."

In October, Commerce issued its final import duties on truck and bus tires from Thailand — at rates measurably higher than earlier forecast. The ITC set duties at 48.39% for Bridgestone Corp., and 12.33% for all others.

Earlier the ITC had determined that Thai tire makers — other than Prinx Chengshan Tire (Thailand) Co. Ltd., which initially received no additional duties — would be subject to an antidumping duty of 2.35%.

A petition filed by the United Steelworkers in October 2023, in which the union alleged dumping margins as high as 47.8% that allowed imports to undercut domestic producers and imperil U.S. jobs, prompted the petition.

Imports of truck/bus tires from Thailand in 2023 were down 30.5% from 2022 but still exceeded 7 million units, or nearly 42% of all truck/bus tire imports. That downward trend reversed itself in the first half of 2024, as truck/bus tire imports from Thailand jumped 32.4% to 4.23 million units.

What started as a small, family-owned dealership headquartered in Portland has grown, well, into a large, coast-to-coast, family owned dealership that remains headquartered where it all began.

Thanks to a busy 2024 that included several acquisitions, including a 50-location Peerless Tire Co., Gills Point S Tire & Automotive Service enters 2025 with 134 locations in 17 states.

"This acquisition is a pivotal moment in our growth journey," Eric Gill, CEO of Gills Point S Tire & Auto Service, said after the Peerless purchase."We are proud to not only expand our reach but to welcome the dedicated employees of Peerless Tire into the Gills Point S family."

Gills Point S started its growth during the height of the pandemic, in November, 2020, when it acquired 10 Vianor-branded retail stores in New England from Finnish tire maker Nokian Tyres P.L.C., providing the dealership coast-to-coast reach.

Flash forward to 2024: CEO Eric Gill consummated deals with several fellow Point S dealers (and friends), not only growing his business, but retaining and expanding the portfolio for Point S, the marketing group that aspires to reach 500 locations within the next few years.

While the acquisition of Peerless Tire, another family-owned entity, was the largest, Gill finished the year by signing a deal to acquire 13 locations owned by Craig Bruneel, who served on the Point S Board of Directors along with Gill.

Gills Point S called Bruneel Point S "a cornerstone in Idaho, known for quality service and a deep commitment to the communities it serves," and it called the acquisition "a significant step in Gills Point S' ongoing growth and expansion, combining the strengths of two businesses that share a commitment to family values, community service and exceptional customer care."

The year was barely two months old when two well-known tire makers became one.

Titan International Inc. acquired specialty tire, wheel and outdoor equipment manufacturer Carlstar Group L.L.C., in a $296 million cash and stock transaction that closed Feb. 29.

The transaction included three factories in the U.S. (Aiken, S.C.; Jackson, Tenn; and Clinton, Tenn.) and another in China (Meizhou), as well as a dozen distribution centers around the world.

According to West Chicago-based Titan, Carlstar's 2023 revenue was approximately $615 million. Franklin, Tenn.-based Carlstar Group employs more than 3,400 in 17 facilities located in four countries.

Titan ranks as the No. 21 tire maker in the world, with sales eclipsing $1.74 billion in 2023. Carlstar, meanwhile, ranks No. 42, with global sales of $680 million in 2023.

Titan President and CEO Paul Reitz called the move "a transformative deal for Titan as it expands our manufacturing and distribution footprint while also further diversifying our product portfolio and key customer relationships, making Titan a "one-stop shop" within the specialty wheel and tire space."

According to Titan, Carlstar "brings significant new customer relationships in multiple channels, including leading wholesale distributors, national retailers, commercial servicing dealers and OEMs."

Not to be outdone by its retail and wholesale counterparts, the commercial tire industry grabbed headlines in mid-August, thanks to Purcell Tire & Rubber Co.'s acquisition of Jack's Tire & Oil Inc. of Logan, Utah.

The integration of the 88-year-old Purcell Tire with the 77-year-old Jack's Tire melds two of the largest commercial tire dealerships in the U.S., with operations involved in commercial, OTR, retail, retreading and automotive services.

Potosi, Mo.-based Purcell is the 10th largest commercial tire dealership in North America, with $285 million in sales in 2023. Purcell is also the 10th largest medium truck tire retreader. Purcell operates five truck tire retread plants, two giant tire plants and four distribution centers.

Jack's Tire, founded in 1947, is the 19th largest commercial tire dealership with $135.6 million in sales in 2023 and the 17th largest truck tire retreader with five Michelin truck retread plants.

With the addition of Jack's 21 locations — in Arizona, California, Colorado Idaho and Utah — Purcell has 85 locations operating in 14 states while distributing product to the entire U.S. market with its OTR retread operations.

"We're excited about the combination of these two companies as it brings us a strong footprint for competing in a dynamic and changing market place. It sets the table for Purcell Tire to be one of the top servicing dealers to the market," Purcell CEO Roger Lucas said.