Tireco to introduce new brand, dealer programs in 2022

LAS VEGAS — Between a milestone anniversary, a new brand and more dealer programs — not to mention new products and expansions of existing product lines — 2022 promises to be quite a year for Tireco Inc.

The family-owned marketer of private and import brand tires and tire-related items has its sights focused on a better future entering the new year, as opposed to the caution and deliberate approach of the past pandemic-dominated 18 months.

Tireco, originally known as K.H.H. Enterprises, was founded in 1972, distributing among other products, tires for 10-speed bicycles. A half of a century later, Gardena, Calif.-based Tireco distributes its own Milestar brand, as well as the Westlake brand owned and produced by China's ZC Rubber Group.

"We're going to have a busy year," Andrew Hoit, vice president of sales and marketing for Tireco, told Tire Business during a break at the 2021 SEMA Show in Las Vegas.

"For the future of brand, it's really about continuing to elevate the quality and components of our products. We will continue to develop new products on par with Tier 2, Tier 1 performance but at higher value."

At the 2019 SEMA Show, Hoit and James Yim, a brand marketing strategist and co-founder of marketing agency Garbage Dream, discussed plans for a Milestar associate dealer program, as well as continued growth of the Nankang brand.

The COVID-19 pandemic and subsequent implementation of import duties in southeast Asia ruined those plans. The associate dealer program was delayed — the new target is the second quarter of 2022 — while tariffs implemented on tires manufactured in Taiwan prompted Tireco to suspend its relationship with Nankang Rubber Tire Corp., which stretches back to the early 1970s.

"I wouldn't be surprised to see (Nankang) come back in the future, but they would likely move their manufacturing base outside of Taiwan," Hoit said, noting that Nankang was hit with antidumping and countervailing duties of over 100%.

"The Taiwan tariff is what really crushed them. But we still have a great relationship. We're just trying to navigate it today. They're unfortunately not a player today."

To help fill that void, Hoit said Tireco is developing another "exclusive" brand, tentatively scheduled to debut in the third quarter this year. He promised more details later this year.

Tireco also plans to launch minimum advertising pricing — or MAP pricing — in conjunction with an associate dealer program. Hoit said the strategy is to allow associate dealers to compete with larger retailers and wholesale distributors around the country.

That includes using MAP pricing for Tire Distributor Xperts (TDX), Tireco's distribution network.

"MAP pricing helps to keep everyone on level playing field," he said. "Even our wholesale distribution ... has to play on a level playing field to continue to sell to other regional players around the country."

New products and sizes also are part of Tireco's expansive plans for 2022.

The firm showed off three of its newest Milestar products at SEMA:

• Patagonia M/T-02, a second-generation product designed for real-world enthusiasts and professional rock crawling competitions;

• Patagonia A/T Pro, an all-terrain version new to the lineup; and

• Weatherguard AS710 Sport all-season tire, for coupes, sedans, and CUVs.

The M/T-02 retains much of the original M/T design, yet integrates new tire technologies. It is built to be tougher and more pliable during aggressive rock-crawling, while maintaining a smooth, quiet on-road performance.

The tread design integrates cross-directional siping to improve tread block strength and resilience with a more stable footprint while reducing the risk of chunking. A new tread compound includes cut and chip resistance, allowing for longer tread life without sacrificing off-road traction.

The tire, which debuted late last year, will be available in 32 sizes, fitting 15- to 22-inch wheel diameters and up to F-load rating, depending on the size.

Meanwhile the A/T Pro will launch in the third quarter and eventually be available in 63 sizes, covering 15- to 22-inch rim diameters, and with up to F-load rating, depending on the size. It will come with a 55,000-mile limited treadwear warranty.

The A/T Pro is designed to work well on any terrain, in any condition, including snow, as the product carries the industry's 3-Peak Mountain Snowflake designation. The tire has a widened contact patch that maximizes road grip while improving off-road traction and on-road comfort.

The rugged tread blocks grip the terrain, Tireco said, while angled tread notches provide increased void surface area for improved mud and winter traction. Staggered step-down grooves provide tread rigidity, enhancing stability and handling while protecting the groove from stone drilling.

Finally, the Weatherguard AS710 is the first Milestar product manufactured in the U.S. (in Tennessee) and first to offer a mileage warranty of up to 80,000 miles.

The Weatherguard AS710 Sport features a Miletech advanced silica-enriched compound that the company says delivers improved handling and enhanced durability in both wet and dry conditions. It features tread blocks with variable depth siping and lateral grooves, enhancing handling in inclement weather.

The tire is M+S-rated and comes in 59 sizes covering 15- to 20-inch wheel diameters and in T, H and V speed ratings. It also comes with a 30-day ride guarantee and road-hazard protection.

"The evolution of the Milestar brand is more focused on being more competitive in the second tier," Hoit said.

"We're talking the Falkens, the Toyos, the Nittos, the Coopers, to where are our products can stand in and perform in that neighborhood at a price point that is of greater value."

In some cases, he said, consumers can save up to 25% on a set of Patagonia tires compared with similar Tier 2 offerings.

With supply-chain issues continuing to wreak havoc on the tire industry, Hoit said having the Weatherguard AS710 manufactured in the U.S. can shrink lead times significantly. All tires are processed at Tireco's 1.1-million-sq.-ft. warehouse in Fontana, Calif., yet the lead time can be as little as 30 days, compared with 90 days or longer for a tire produced overseas.

With demand for light truck tires soaring, Hoit said, "if we have product, you're able to capitalize on that sales opportunity, and with a shorter lead time with a U.S.-based manufacturing facility, you can react quicker."

As a result of soaring costs, prompted by supply-chain difficulties, Hoit said Tireco has discontinued its factory-direct order process.

"We don't want any situations where we can't control the costing as much as possible," he said. "We're flowing all of our product through (the Fontana facility)."

He said the company also plans to open a second distribution facility, on the East Coast.

Hoit said Tireco will continue to look for more reasons for distributors to do business with Tireco and Milestar.

"If you look at any new product launches, it's very compelling, the quality, the aesthetics and overall performance," he said. "We've been approached by distributors who don't do business, but because of inventory and supply situation, we're not able to sign new distributors yet.

"It's been a challenging time, but I feel like we've come through it well and positioned to take advantage and grow our market share in 2022 and beyond."