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The replacement tire market is served by several channels. Franchised automotive dealerships have taking share from other channels and are now thought to account for 3 to 4% of the replacement tire business by units and somewhat more on a dollar-weighted basis. Dealers and automakers report that replacement tire programs also lead to more parts and service work for suspension and brakes (that is, around the wheel).
| Automaker / Franchise | Tire Manufacturer Direct Programs | Dealer Tire | Tire Rack | Tire Kingdom | Comments |
|---|---|---|---|---|---|
| Acura | Possible participation: Honda Tire Rack program | ||||
| Audi | Yes | ||||
| BMW | Yes | ||||
| Chrysler/Fiat | Yes | Yes | Dealers each choose | ||
| Ford | Yes | ||||
| General Motors | Yes | ||||
| Honda | Yes | ||||
| Hyundai | Yes | ||||
| Infiniti | Yes | ||||
| Jaguar | Yes | ||||
| Land Rover | Yes | ||||
| Kia | Yes | ||||
| Lexus | Yes | ||||
| Mazda | Yes | ||||
| Mercedes-Benz | Yes | ||||
| Mitsubishi | Yes | ||||
| Nissan | Yes | ||||
| Porsche | Yes | ||||
| Saab | Yes | ||||
| Subaru | Yes | SoA (SNE and SNY not confirmed) | |||
| Suzuki | Yes | “Suzuki Advantage Authorized Tire Program” | |||
| Toyota | Yes | Yes | TK serves SET; Dealer Tire serves all others | ||
| Volvo | Yes | ||||
| VW | Yes |
Industry experts report that Chrysler implemented the first tire purchase and resale program for its dealerships – starting in the late 1990s. Ford and GM followed with their own comparable programs. The cornerstone of the Chrysler, Ford and GM programs were direct contracts between the individual automakers and the leading tire manufacturers. The automakers secured favorable pricing on tires to be delivered by the tire manufacturers via their wholesale distribution channel. Tires ordered by dealerships were delivered by tire wholesale dealers (distributors). The transaction settlement process is: (1) tire dealer submits proof of delivery (of tires to car dealership) to the tire manufacturer; (2) the tire manufacturer pays the tire wholesaler a delivery fee, restocks tire dealer and invoices the appropriate automaker; (3) the automaker bills the dealership for the tires.
The import automakers and tire manufacturers did not reach agreement on comparable tire programs for the import automakers’ dealerships. (The exception to this is that import automakers affiliated with one of the three domestic automakers were allowed to participate - for example, Mazda implemented Ford’s tire program for several years.)
The vacuum did not last. Dealer Tire offered import and domestic automakers tire programs for their dealerships. Many import automakers are served by Dealer Tire programs.
Following the Firestone tire recall, Ford focused on dealer tire programs, building the largest and highest volume program known as Around-the-Wheel (AtW).
Tire wholesalers, once mainly independents, are increasingly consolidating into groups with many outlets. The leading tire wholesale distribution consolidators include: ATD (American Tire Distributors) and TK (Tire Kingdom).