Dealers can expect to see more products and an enhanced associate dealer program from Nitto Tire U.S.A., says Keiko Brockel, the company’s president and CEO.
MTD: How was the first half of 2024 for Nitto? What were some of the highlights and challenges?
Brockel: In short, the market in 2024 has been challenging for three reasons. Overall economic condition with high interest rates and inflation on consumer goods has made it difficult, especially for the premium product segments. Reduction of import duties has created more severe competition. Labor issues at the retail level persist as today’s younger- generation workforce prefers alternate “flex jobs,” as opposed to traditional work.
However, we are confident and have high expectations for the second half of the year as we will be launching an incredible new product.
MTD: What's your take on the state of tire demand in the U.S.?
Brockel: We see demand fluctuate based on many factors, including import duty and potential logistic challenges as examples. However, we are in a good position, given the fact that the majority of our products are built in the U.S.
MTD: Nitto has a long, well-established history in the light truck tire segment. How would you describe the U.S. light truck tire segment as we move through the second half of the year? Do you believe this segment will continue to grow in the long-term? If so, why?
Brockel: We are doing well as we are seeing year-over-year growth in our Grappler products and since the vast majority of our LTR products are produced domestically, our fill-rates have improved, which has helped our sales.
We see the overall demand in the LTR market sustaining as tires are ultimately a necessity purchase. However, there is a much greater level of competition.
We forecast that the current economic pressures faced by consumers will continue for at least the remainder of 2024, but there are both macro and micro-economic factors that can bring upon rapid change that we will need to be ready to respond to.
MTD: Nitto recently rolled out a new, all-season, 3-Peak Mountain Snowflake (3PMS)-certified UHP tire, the Motivo 365 all-season ultra-high performance tire. Can you tell us more about this tire? How has it been received by tire dealers and end users?
Brockel: To our delight, consumers have showered us with positive reviews on the Motivo 365 for its attractive design. We see this as a great accomplishment, given the fact that the product segment is generally viewed to be dull and boring.
As the name suggests, the Motivo 365 is 3PMS-rated for year-round driving. We placed the utmost effort to develop this product to deliver exceptional performance. And what we think our dealers and customers/consumers appreciate even more is the exceptional value proposition of the product.
Motivo 365 has been well-received as an excellent option for these consumers who desire to have an all-weather product without breaking the bank.
MTD: How would you describe Nitto's current fill-rate and inventory position?
Brockel: We are in good position as the majority of our products are produced in our U.S. factory. We continue to make incremental improvements to both our fill-rate and inventory position.
MTD: What investments is Nitto making in its dealer/distributor network in the U.S.?
Brockel: As other manufacturers are making concerted efforts to improve their associate dealer programs, our focus will also be to double-down on our Enthusiast Circuit associate dealer program.
We have plans to invest in greatly improving the overall experience, support and communication through the use of innovative new technologies.
MTD: What can we expect to see from Nitto during the second half of 2024?
Brockel: Terra Grappler G3, Terra Grappler G3, Terra Grappler G3! Our fans have been anxiously waiting for a decade for this product.
Terra Grappler is an icon in the all-terrain market segment and this next generation will reflect current and future market needs with a compelling limited tread-wear warranty that covers 70,000 miles for hard metric sizes and 55,000 miles for LT-metric/flotation sizes.
This - coupled with outstanding wet, dry and winter performance (3PMS-rated) - will make it the best-performing Grappler product that Nitto has ever built to date.
