News You Can Use

RTA NEWS YOU CAN USE
July 3, 2015

CHINESE TRUCK TIRES
AND WHAT CAN BE DONE ABOUT THEIR LOW PRICES?

BY

HARVEY BRODSKY
MANAGING DIRECTOR
RETREAD TIRE ASSOCIATION

As I have been hearing from a number of our members, both RTA retreaders and casing dealers, the influx of Chinese truck tires into the U.S. and Canada as well as in other parts of the world are having a very serious detrimental effect on their businesses.

I wish the Retread Tire Association had the power to do something about it, but we do not.

We have had a number of conversations with our friends at the Tire Industry Association about the problem but they are also powerless, so we are told.

Is this going to have a profound effect on the profit margins of our members? Unfortunately, in the short term, my guess is that it will.

So, what to do?

Since the Chinese are NOT DUMB, they will realize that unless their product quality improves, many buyers of Chinese truck tires will NOT be happy when the low prices they pay become very expensive when they discover that their "bargains" CANNOT be retreaded and do not perform as well as promised.

My advice to our members and other readers of this paper is to educate their customers that a so called bargain can become very expensive when they discover that their Chinese "no name" truck tires will only last for one life at best. By explaining to their customers that they will come out ahead by paying a little more for a BETTER QUALITY known brand tire that CAN be retreaded, and will cause them fewer problems than that "no name tire."

BUT, there are exceptions!

A number of Chinese tires have greatly improved their quality and are now being accepted as tires that will perform well and CAN be retreaded. Two names that come to mind are DOUBLE COIN and SAILUN, and there are others. Both DOUBLE COIN and SAILUN are well received by many buyers and will continue to enjoy acceptance by truckers in North America and elsewhere. However, they are more expensive than some of the "no name" Chinese truck tires of dubious quality.

We have to remind our customers that "you get what you pay for and you pay for what you get."

Sadly, however, there a few horror stories that come across our desk, including the following one that we received today from one of our casing dealer members.

We also have an interesting email to share from our good friend, Gus Lima, shown below.

To all: If the Chinese government implements a domestic recycling/retreading tire policy the quality/cost of tires (thus casings) will increase diminishing the lower quality product being manufactured in some cases now.

And here is one from my good friend Jacob Peled of RTA member Pelmar Engineering, shown below. It is slightly edited for clarity,

The only way to combat the influx of low price Chinese tires is to produce tires that are superior in quality and service. 

Stopping or controlling import administratively should only be done if it is proved that the tires are sold at an unreasonable price and thus destroying local industry. 

Most customers over time will judge the product they buy by quality and service as carrying more weight than low price.

Best regards,

J. Peled

Finally, here is an interesting email from Hashanth Kulatunge of RTA member Casings Australia, shown below. It is slightly edited for clarity.

Hi All,

 We all must realize that cheap Chinese tyres will always be in the market and no one of us can stop it and we must realize and accept customers will always go to cheaper option.

However what I am suggesting to Harvey and requesting Gus to give RTA the option of educating retreaders in a open forum such as the Panama show, are the benefits of retreading. In western countries such programs are lesser effective than 3rd world countries. What I have been experiencing first hand is that once thriving retread companies in 3rd world countries which provides local employment, etc. are shutting there doors and becoming new tyre dealers, and many 100's of jobs are laid off.

Therefore, what I am suggesting is that a prominent person such as Harvey or an organization such as RTA, plus tread rubber suppliers, machinery suppliers and casings suppliers must take the opportunity in these shows to promote the benefits of retreading and help reassure the retreaders that there is still room in the market for retread tyres, and such process has massive benefits to the environment and their local communities.

Once again fighting to stop cheap tyres is no option. However, encouragement and  promoting to wholesalers and shops that retread tyres have benefits is the option for our survival.

Thank you and all of you in USA happy Independence Day.

Most sincerely,

Hashanth Kulatunge

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That's it for now, folks.

I intend to have copies of this memo with me at the upcoming EXPO in Panama later this month and will be distributing them from our booth there.

Finally, I encourage you to contact us with suggestions that we can share with others as we continue to look for ways to combat the low price Chinese truck tire problem. Please send your suggestions and comments to info@retreadtire.org.

If you will be in Panama, please stop by our booth to say hello.

Best regards to all,

HARVEY
July 3, 2015

•     •    •
THOUGHT FOR THE DAY

"Tough times never last,
but tough people do."

~Robert H. Schuller