At the end of the last century, the tire project that blossomed everywhere and the increasing downstream purchasing power made tire dealers ushered in their “golden age”. With the rise of Internet projects and new sales ideas, dealers after the 50s and 60s seem to have an anxious "middle-age crisis" along with the entire traditional marketing industry.
Tire manufacturers and dealers have always maintained a delicate relationship. Dealers or agents are an indispensable bridge between tire companies and consumers, but tire companies do not want to lose their active position, with a deteriorating competitive environment and trade. The situation has cut the profits of upstream factories. Some manufacturers have also deliberately removed the middlemen's hand to reach consumers directly. Coupled with the multiple rounds of new Internet marketing, dealers' days have become less than good.
In September 2018, American tire dealer ATD (American Tire Distributors Inc.) released a public message, in view of its excessive and difficult to repay debt, the company has plans to reach a capital restructuring agreement with the relevant investors, ATD creditors will After the reorganization, it owns 95% of the company's shares. After the application is submitted to the relevant government department, the operation team may lose control of the 83-year-old company.
This tire distributor, established in 1935, originally represented more than 40,000 tires in the brands of Bridgestone, Michelin, Goodyear, and Continental Horse. It has more than 140 distribution centers and 1,500 distributions in North America. Vehicles, with revenues of more than 30 billion yuan in 2017, are the world's number one in the tire dealership industry.
However, this traditional dealer has been in trouble for the end of 2017, and his close partners who have cooperated for many years have brought him a continuous blow. In January 2018, Michelin (North America) and Sumitomo (Americas) reached an agreement to invest 50% to form a new tire sales company. The two parties will integrate their tire distribution business and establish a new brand NTW; in April 2018, Goodyear and Bridgestone announced the joint establishment of the distribution company TireHub, which announced the termination of direct supply relationship with ATD on the same day; in June 2018, Bridgestone also issued a statement that it will no longer distribute its shares in the US through ATD. With car tires, the deadline is July 31.
ATD Company expressed regret and disappointment with the partners' practices. They have many years of friendly and cooperative relations, and parting ways is a huge loss for both parties. The first thing that caused the shock was the stock price of ATD. The continuous bad news made its stock price and market value plunged. After losing the authorization of these international big names, the company could not meet the needs of the intrinsic consumers. Near collapse.
According to manufacturers such as Goodyear, ATD is a large-scale and wide-ranging company, but they have always adhered to the traditional, pure distribution ideas, and have maintained the characteristics of multi-level distribution in the contemporary development of rapid consumption patterns. To some extent, it has left the Internet and a new generation of consumers.
Bridgestone and Goodyear said in the establishment of the new distribution company TireHub that they hope that the new company will allow their products to reach consumers faster and directly than the traditional distribution model, greatly improving the transportation and operation speed of tire products. And by establishing a new online sales platform to give users a better purchasing experience, while controlling the sales channels in their own hands, it can also save too many intermediate profits.
ATD released the latest information on the restructuring on October 5, and it has reached an agreement with most creditors. The company's debt is expected to reduce by about 1.1 billion US dollars and get a new round of financing of about 250 million US dollars. A company that has been in bankruptcy before will be "returned to life." The relevant person in charge said that in the future, ATD will change its inherent business ideas and increase sales innovation in the Internet era by promoting new projects.