American Tire Distributors — which delivers replacement tires to local, regional and national tire retailers — bills itself as the country’s largest independent tire distributor. It has 83 distribution centers serving 37 states. The company is currently owned by affiliates of private equity firms Investcorp, Berkshire Partners and the Greenbriar Equity Group.

Its potential new owner, TPG, is one of the largest private equity groups globally. It has more than $48 billion of assets under management and offices around the world. The firm, which formerly went by the name the Texas Pacific Group, has bought a number of well-known companies over the years, including Burger King, Neiman Marcus and Harrah’s Entertainment.

William Berry, president and CEO of American Tire Distributors, called the deal an exciting time in the evolution of the company. “We welcome our new partners at TPG, who share the same vision we do for the continued growth of the American Tire Distributors brand as significant growth opportunities remain and we continue to seize opportunities, such as geographic expansion and online sales,” Berry said.

“American Tire Distributors is a market leader that has demonstrated its ability to perform well over an extended period of time,” said Kevin Burns, a partner at TPG. “We’re investing behind a great management team, and we look forward to working with them to continue to expand this successful franchise.”

The transaction has fully committed financing, consisting of a combination of equity to be invested by TPG Capital and debt financing to be provided by affiliates of Bank of America, Barclays Capital, General Electric Capital Corp., RBC Capital Markets, UBS and Wells Fargo Capital Finance.

The new Global Tire Expo is the end result of a joint effort on the part of SEMA and TIA (the Tire Industry Association) that launched late last year. The groups’ goal was to provide the tire industry with greater value at the SEMA Show. It was a response to problems that had developed over the years.

In a recent open letter to the tire industry, TIA Executive Vice President Roy Littlefield wrote: “Unfortunately, between the drastic downturn in the global economy and some complacency on the part of TIA and SEMA, some of you may feel that the show might have lost its way. For that, on behalf of TIA, I want to personally apologize. But, I am also taking this opportunity to tell you that both TIA and SEMA have listened and we have made some major, substantive and exciting changes that we believe should give you cause to ‘come home’ this year.”

Among the changes is the placement of a TIA representative on the SEMA Show Committee, as well as the SEMA Tire & Wheel Council. “If you felt as though your voice was not heard by show officials in the past, you can now rest assured that it will be heard from here on out,” Littlefield wrote in his letter.

Additionally, tire manufacturers’ booths at the new Global Tire Expo will be placed in the center in an attempt to provide a greater level of prominence. The expo also will include expanded educational session tracks targeted to the tire market.

“Tire manufacturers can now rest assured that they will literally have a ‘seat at the table’ when it comes to all aspects of the Global Tire Expo – Powered by TIA,” Littlefield said in a statement announcing the new expo. “Their concerns will receive the timely attention they deserve, and, what is even more exciting, is the fact that they will no longer just be exhibitors. They will be true partners in this event.”

“By working with TIA, we have created the Global Tire Expo to meet the needs of the tire industry,” said Chris Kersting, SEMA president and CEO. “We’re excited and confident that the 2010 SEMA Show and the Global Tire Expo will be more meaningful and relevant than ever before for tire manufacturers and buyers.”

Kersting also pointed out that the SEMA Show has the added benefit of drawing more than 50,000 buyers from all over the world, including those not currently in the tire market. “Many buyers at the SEMA Show are looking to expand their product lines to include tire-related products,” he explained. “The dedicated floor section and the other new programs will help buyers discover the potential that the tire industry has to offer.”

The 2010 SEMA Show will be held Nov. 2-5 at the Las Vegas Convention Center.

Another Monro director, Francis Strawbridge, has already retired from the board. Strawbridge’s exit from the board was effective April 1. Monro stated in a recent SEC filing that his retirement “was not a result of any disagreement with the company or board.” Strawbridge, the retired chairman of Strawbridge & Clothier, had been a member of the Monro board since 2002. Robert Mellor, the former chairman and CEO of Building Materials Holding Corp., has been appointed to fill Strawbridge’s vacancy. Mellor is no stranger to the Monro board, having served as a director from 2002-’07.

Rising fuel prices were a key factor. Rising tire and insurance costs also contributed to the increase in overall costs.

“Paying more at the pump is not only increasing the operational costs of vehicles, but it’s also affecting depreciation values,” explained John Nielsen, director of AAA auto repair and buying. “With the growing appeal of more fuel-efficient vehicles, small sedans are experiencing less depreciation and holding their value longer, while we’re seeing notable rises in depreciation costs with categories of less fuel-efficient vehicles.”

The small sedan category experienced the smallest overall increase, rising only 2.9 percent from last year to 43.3 cents per mile, or $6,496 per year. AAA attributed the minimal increase to the increased popularity of small sedans triggered by higher fuel prices. This resulted in the small sedan category being the only one where depreciation costs were lower than last year, falling 1.9 percent.

With more consumers seeking fuel-efficient vehicles, categories of vehicles not known for good fuel economy were hit with sizable increases in deprecation. The SUV category experienced the largest increase with yearly depreciation rising 10.7 percent, or $484, to $5,003 yearly. Large sedans had a depreciation jump of 6.1 percent to $4,828 yearly, while minivan depreciation increased 4.6 percent to $3,995 yearly.

NRS is a national association of service providers that repair, service and maintain heavy trucks, commercial vehicles and RVs that are owned and operated by members of the NRS network. NRS facilitates towing, repair, maintenance, parts, glass, locksmiths and discounts with national suppliers for all of its member vehicles and fleets.

In related news, ASA members who carry workers’ compensation coverage through the Meadowbrook Insurance Group and who meet eligibility requirements will receive a dividend as a result of participating in the ASA group program. The dividend represents a 3-percent return of annual premium for policy year 2008-’09.

“Through this partnership, we are delivering to auto repair businesses the resources they need to successfully communicate digitally with their customers about the importance of vehicle maintenance,” said Rich White, executive director of the Car Care Council. “Combining the credibility and expertise of the Car Care Council with the dynamic communication platform of Demandforce creates a strong collaboration that will benefit service and repair professionals and vehicle owners.”

The partnership is designed to benefit consumers by educating them about proper vehicle maintenance, allowing them to avoid costly last-minute repairs.

In related news, the Car Care Council and CalRecycle have partnered to promote California’s new tire sustainability program, “Just Check It,” which informs consumers about the benefits of tire inflation and maintenance. The campaign kicked off earlier this month.

NAD, an advertising industry self-regulatory forum, examined claims made by Michelin in print, broadcast and Internet advertising, as well as in a brochure provided to tire dealers. While the brochure referenced in the NAD inquiry has been discontinued and is no longer in circulation, Michelin reportedly intends to continue to disseminate the claims included in the brochure. Therefore, NAD reviewed those claims on the merits. Claims at issue included:
• “More miles. More fuel efficiency. More than what you pay for.”
• “33,000 miles longer” tire life.
• Brakes “14 feet shorter.”
• “#1” in fuel efficiency; “Longer lasting, more fuel efficient.”
• “Best-in-its-class” for “safety, durability, fuel efficiency and utility.”

NAD says it was concerned with whether the basis of comparison for the superiority claims found throughout the brochure for various Michelin tires were clearly limited to the objects of the comparison or were likely to be interpreted more broadly. NAD noted that the brochure featured asterisks and endnotes to point the reader to disclosures. However, NAD found that, unless the endnotes were carefully read and understood, a dealer could easily take away inaccurate and unsupported messages. NAD recommended that the disclosures, whether they appear in a brochure or any other format in future advertising, be referenced in a clear and conspicuous manner and appear in immediate proximity to the claims being qualified.

More specifically, NAD recommended that Michelin, in charts included in the brochure, discontinue references to “competition” or “other tires” and, in future ads, avoid communicating a comparison to all competing tires if the comparison is limited to particular tires.

NAD also recommended that the “sacrifice” claims (e.g., “You can choose a tire other than the [MICHELIN Tire], but this is what you sacrifice”) be discontinued or modified to make clear the basis of comparison. As for the fuel efficiency update chart, NAD recommended that the “Reduced CO2” column be modified to read “Reduced CO2 vs. Competitive Tire” to avoid conveying the unsupported message that reduced CO2 emissions are as compared to all competing tires.

NAD determined that the placement of the print advertisement within the brochure was not problematic, although NAD noted that the claims in the print advertisement must be accurate. NAD recommended that Michelin either discontinue the claim “More miles. More fuel efficiency. More than what you pay for” — presented as the headline in print advertising — or modify it to ensure that consumers understand the claim applies only to the advertiser’s HydroEdge tire.

NAD further recommended that Michelin take steps to assure that the basis of comparison for all website advertising is clear.

Following its review of the broadcast advertising at issue, NAD found that it was not problematic with respect to the object of the comparison and that the language in the disclosure — “Fuel savings are estimates over 55,000 miles based on comparative rolling resistance testing of Michelin Energy Saver A/S tires versus Bridgestone Turanza EL 4000 tire. Actual on road savings may vary” — complies with prior NAD recommendations.

Michelin, in a statement, said it disagreed with NAD’s findings regarding claims made for the HydroEdge tire and will appeal those findings to the National Advertising Review Board. “Michelin looks forward to working with the NAD in the future to continue to ensure consumers are clearly and accurately informed as they make their tire purchases,” the company said.

James is an endorser of BendPak, and his image can be seen on the company’s website and in BendPak marketing material. He has been in the news lately for allegedly being unfaithful to his wife, actress Sandra Bullock, and for going into rehab.