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Nissan Tire AdvantageTIRES 101
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OUR GOAL To make it easy and profitable for
our partner dealerships to be in the tire
business.WHAT WE SHOULD TAKE AWAY FROM OUR
MEETING TODAY The knowledge, skills, materials
and confidence needed to successfully sell more
tires and needed related services to our service
customers.
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Introduction Comprehensive Product Offering

• Original Equipment and other major brands for the
  past 10 model years
• 160 tires for Nissan
• Economical brands in popular sizes to support
  used car reconditioning
• Winter tires
• Tire hardware
• Racking solutions

Bridgestone
Firestone
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Introduction - Agenda

• Introduction Why sell tires?
• Section 1 Tire basics
• Section 2 Inspection and Tire Manufacturers
  Warranty
• Section 3 Selling tires to your service
  customers
• Section 4 Workbook Review
• Section 5 Training Review

Group DiscussionYears of tire experience
workbook page 1
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Introduction Why Sell Tires?

• Replacement tires for passenger vehicles and
  light trucks represent a 22 billion-per-year
  retail market.

• Bridgestone / Firestone

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Why Sell Tires? Customer Retention

• If tires are not offered, customers will go
  elsewhere for tires and other vehicle
  services1
• 81 of independent tire retailers offer other
  vehicle services2
• 75 of customers choose to get all of their
  service done at the place where they get their
  tires changed

• Tire Review (9/99) Includes tune ups,
  oil-changes, brakes and struts
• Bridgestone / Firestone

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Why Sell Tires? Customer Satisfaction

• Customers find purchasing tires confusing and
  intimidating
• Your dealership is the expert in all repairs for
  Nissan vehicles and will be seen also as the tire
  expert.
• Customers who come to the dealership would like a
  complete service and parts solution, including
  tire replacement.
• The technician and advisors expertise can help
  customers find the best tires for their vehicles.

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Why Sell Tires? The Opportunity is in Your
Dealership

• On the Service Drive
• Everyday over 13 of the tires coming through
  your service drive need to be replaced.1
• Pre-Owned Vehicles
• Tire Sales should generate around 0.13 in
  additional parts sales per tire sales dollar2

Your Dealership Potential workbook page 1

• Dealer Tire has conducted comprehensive tire
  tread depth surveys in the service departments of
  selected dealerships in October 2002 and January
  2003.The number of tires requiring immediate
  replacement (
• Carlisle Company Analysis (January 2004)

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Why Sell Tires?

• The Opportunity is in Your Dealership
• Associated Parts and Service Sales
• Additional Tire Sales Revenue
• Increased Customer Retention
• Increased Customer Satisfaction

Whats in it for me? workbook page 1
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Section 1 Tire Basics
workbook page 2
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Tire Basics - AnatomyAs the only direct
connection point between a vehicle and the road
surface, tires perform 3 crucial functions

• Support the vehicles weight
• Help enhance safety by transmitting
• acceleration, braking, and cornering forces
• Help absorb road shocks

workbook page 2
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Tire Basics - Anatomy

• Tires consist of 3 major components
• Casing or carcass.
• Belt system.
• Tread area.

workbook page 2
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Tire Basics - Anatomy

• Casing or Carcass
• Forms the main body of the tire.
• Primary function is to provide support and
  strength.

workbook page 2 The casing includes two
important items. One holds air inside the tire
and the other gives the tire strength and holds
the tire against the rim. Fill in their names in
your workbook. (answers on next slide)
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Tire Basics - Anatomy
Workbook exercise discussion

• The Liner
• Covers the inside surface.
• Holds air inside the tire.
• The Bead Area
• Forces the edge of the tire against the wheel rim
  when the tire is inflated.
• Supports the lower sidewall. Consists of wound
  steel cords wrapped with a synthetic fabric (like
  nylon) and surrounded by a hard rubber bead
  filler or rubber jacket.

workbook page 2
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Tire Basics - Anatomy

• The Belt System
• Covers the face of the casing
• Reinforces and stabilizes the tread
• Contributes to tire handling and ride quality
• Common belt materials steel and synthetics
  (Kevlar)
• Consists of 2 or more layers, plies
• Plies are stacked one covering the other
• 99.5 of all tires are radial
• Nylon belt guards shrink around the belts to
  hold them in place and prevent vibration

workbook page 2
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Tire Basics - Anatomy

• The Tread Area Functions
• Channel and remove water
• Provide traction and handling
• Reduce road noise
• Dissipate heat (heat is the major cause of tire
  wear)

workbook page 2
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Tire Basics - Anatomy
workbook page 2

• The Tread Area Designs
• Tread Blocks - Tread blocks contact the road and
  transmit the drivers input to the tires
• Grooves - Grooves channel water
• Sipes - Sipes squeeze to grip the road (traction)
• Tread Patterns
• Symmetric - Mirror-Image (wet weather)
• Asymmetric - Different (performance)
• Directional - Rotates in only 1 direction

Grooves
Tread Blocks
Sipes
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Tire Basics Sizing group exercise

• P215/55R17 93V WHATS THIS MEAN?
• P P-Metric (passenger) / LT - Light Truck
• 215 Section width in millimeters (mm.)
• 55 Sidewall aspect ratio or of section
  width
• R Radial design
• 17 Wheel diameter in inches (in.)
• 93 Load rating
• V Speed rating or performance rating

workbook page 2
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Size Location
workbook page 2
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Tire Basics  DOT Number

• The DOT (Department of Transportation) number is
  an 11 (or 10)
• digit ID required by the Federal Government. It
  specifies the
• manufacturer plant, tire line, size, week, and
  year
• manufactured.
• CX Tire Manufacturer Plant
• 9N Tire Size
• YEM Manufacturers Code
• 3303 Production Code the date of manufacture
  (3303 would be the 33rd week of 2003.
  Prior to year 2000 - -239 the 23rd week of
  1999)

workbook page 2 - Tire Size Exercise Youre
looking at a 205/60R16 91H tire. How tall is the
sidewall?
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Tire Basics  Tire Types
workbook page 3

• There Are 5 types of tires
• Passenger - Broadest market, all-season traction,
  good tread life, aspect ratio of 70, flexible
  sidewalls for improved ride comfort increased
  fuel economy.
• Touring - Stiffer sidewalls and better handling
  than passenger tires, all-season traction, Some
  performance characteristics.
• Performance - Advanced road-gripping compounds
  for excellent traction, shorter braking
  distances, and improved heat dissipation. Aspect
  ratio of 60 or less for more responsive cornering
  and better high-speed control.
• P-Metric Light Truck - Similar load capacity to
  passenger tires, but with deeper tread.
• Light Truck - LT on sidewall. Reinforced
  sidewalls for greater load carrying capacity and
  more aggressive tread design for improved
  traction in foul weather conditions.

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Tire Basics  Speed Rating

• Speed rating is the maximum speed at rated load
  and inflation
• Speed rating should be referred to as
  Performance Rating
• Always replace tire with the same or higher
  speed rating

workbook page 3

ZR Above 149 mph
For tires having a maximum speed capability
above 149 mph, a ZR may appear in the size
designationabove 186 mph, a ZR must appear in
the size designation.
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Tire Basics  Load Index

• Load Index is the maximum load at rated speed
  and inflation
• Always replace tires with the same or greater
  load index rating

workbook page 3 Speed rating Exercise Your
customer says, Why do I need H rated tires? I
never drive anywhere near 130 mph!
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Tire Basics
workbook page 3

• Uniform Tire Quality Grading (UTQG)
• Treadwear Rating Design life of the tire,
  usually between 100 to 700
• Traction Rating Ability to brake on straight,
  wet test track, given as AA, A, B, or C
• Temperature Rating Ability to dissipate heat,
  given as A, B, or C
• The UTQG System should only be used when
  comparing tires made by the same manufacturer.

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Review Introduction Section 1 Tire Basics

• 3 major components of a tire
• Casing, belt system, tread
• Reading a Sidewall
• Size, load index, speed rating, DOT number, UTQG
  System
• Five tire types
• Passenger, Touring, Performance, P-Metric Light
  Truck, Light Truck
• Speed and load rating
• UTQG System Tread wear, Traction, Temperature

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Section 2Inspecting Tires  Customer Tire Care

• Customers must do their P.A.R.T.
• Pressure - Check your tire pressure monthly to
  improve wear, safe predictable handling, braking,
  and maximum fuel economy.
• Alignment - Keep your vehicle suspension in good
  working order. Abnormal wear caused by
  misalignment is not warrantable.
• Rotation - Regularly rotate tires as recommended
  by Nissan scheduled maintenance.
• Tread - Visually check your tires for uneven wear
  and signs of damage. Avoid potholes, curbs,
  spinning, and hard cornering.

workbook page 4
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Inspecting Tires  Customer Tire Care

• AIR PRESSURE- TRUE OR FALSE workbook exercise
  page 4
• Improper air pressure is the No. 1 cause of
  premature tire wear.
• TRUE - 1 in 4 tires are not inflated properly!
• Correct air pressure is found on the drivers
  side door jamb or manual.
• TRUE - Check the placard on door jam or owners
  manual for the correct tire pressure for your
  vehicle
• A healthy tire loses about 1 lb. of air pressure
  per month.
• TRUE - -Customers should check tire pressure at
  least monthly. Check pressure when tires are
  cool, preferably in morning or when vehicle has
  been driven less than 1 mile.

• Correct tire pressure is important and will help
  achieve
• Acceptable tire life
• Safe, predictable handling
• Expected fuel economy
• Enhanced braking capabilities

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Warranty

• Purpose of Tire Manufacturers Warranty
• Protects the customer
• Adds value to the product
• Helps sell tires

Tires are warranted by the respective tire
manufacturer. The Nissan Tire Advantage program
is only facilitating the tire warranty claim
administration.
workbook page 4
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Warranty

• Non-Warrantable Conditions workbook fill-in
  page 4
• Shoulder Wear Worn evenly on the inside or
  outside shoulder
• Edge Wear - Worn tread on both shoulders
• Center Wear Worn evenly in the center of the
  tread
• Feather Wear Irregular, feathered, fish scale
  wear on tread face
• Cupping Irregular, round, worn patches of wear
  on tread face
• Accident/Abuse Spinning, hard cornering, fire,
  vandalism
• Road Hazard Punctures, tears, slices on tread,
  sidewall or shoulder from foreign
  object or severe impact (replacement tires
  covered by Road Hazard Protection Program)

Tires are warranted by the respective tire
manufacturer. The Nissan Tire Advantage program
is only facilitating the tire warranty claim
administration.
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Warranty

• Warrantable Conditions Defects In Materials
  Workmanship workbook page 5
• All warrantable tires will be reimbursed at 100
  in the first 25 of tread wear and prorated
  thereafter
• Ride Disturbance (out-of-round, excessive
  vibration) Isolate defective tire or 2 tires
  within first 2/32 of wear
• Tread Separation
• Sidewall Separation - Bubble in sidewall-check
  for impact break in liner, marks on wheel rim
• Belt Edge Separation - Belt package separates
  from carcass at shoulder
• Radial Cracking - Cracks in grooves,
  sidewall-check tire age-DOT
• Lateral/Radial Pull - Vehicle pulls left or
  right-check pressure first

Tires are warranted by the respective tire
manufacturer. The Nissan Tire Advantage program
is only facilitating the tire warranty claim
administration.
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Warranty
workbook page 5

• My dealerships pro-ration, adjustment procedure
• Determine tire eligibility
• Complete and submit the tire warranty claim form
  online
• Call 866-NNA-TIRE to obtain FedEx call tags
• Return tire to Dealer Tire
• Dealer Tire will inspect the tire to determine if
  it is eligible for warranty submission to tire
  manufacturer
• Credit will be issued within 30 days of Dealer
  Tire inspection
• My Dealer Tire Contact for assistance
• Juan Rosado and Frank Strnad 866.NNA.TIRE
  (866-662-8473)
• Trainer/Outside Brand Manager - Ken Mason _at_
  330-417-2789

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Review Section 2 Tire Inspection Warranty

• Customers must do their P.A.R.T.
• Pressure, Alignment, Rotation, Tread
• Importance of proper tire inflation
• Warranty Warrantable and Non-warrantable
  conditions
• Contact Assistance

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Section 3 Selling Tires and Related Services

• Why people buy tires from your dealership
• Youre convenient
• Customer is in the service drive today
• Already in the buy / service mode
• 78 of maintenance customers buy tires from the
  first person that recommends tires
• Youre the Expert
• You know the vehicle better than anyone
• Your dealership has factory trained technicians
  and state-of-the-art equipment
• Owners are concerned about safety and they trust
  your recommendation
• Owners want to keep that new vehicle ride
• Youve Got the Right Tire
• Immediate availability of original equipment
  fitments

workbook page 6
Boston Consulting Group Study, Automotive News,
December 2001
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Section 3 Selling Tires and Related Services

• Preparation is the key to success
• workbook exercise page 6
• List at least three selling tools you should have
  on hand to sell tires

• Program Training
• Tire and vehicle inspection process
• Tread depth gauge
• Tire pressure gauge
• Retail Selling Guide
• Product screen
• Competitive information
• Tire Guide
• Tire manufacturer warranty brochures
• Tire product bulletins (print or on-line)
• Features, benefits, pictures, warranties

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Selling Tires and Related Services

• Service Drive Inspection
• Visually Inspect Tires
• Measure tread, check air pressure and tire age
• 5/32 - 4/32 Caution, recommend replacement
  soon
• 3/32 or less - Definite replacement
• Visually Inspect the Vehicle
• Check vehicle for related service needs
• Recommended service interval
• Wiper blades, battery, etc.
• Check vehicle for existing damage

workbook page 6
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Selling Tires and Related Services

• Listen. Ask questions. Confirm your
• understanding. Be an advisor.
• Evaluate vehicle performance capability
• Ownership plans for vehicle
• Vehicle usage, driving habits
• Tire brand preference
• Tire performance likes/dislikes
• Discuss tire importance, careand maintenance

• How long do you plan to keep your car?
• Are you happy with the tires you have now?
• What do you dislike/like about these tires?
• How many miles per year do you drive?
• How do your tires handle on wet roads?
• Are you getting a smooth ride?
• Do you mostly drive in the city or on the
  freeway?

workbook page 6
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Selling Tires and Related Services

• Share your findings and present a solution
• Tread depth measurement
• Irregular, premature wear
• Use the selling guide to identify the
  selection(s) available for the customers vehicle
• Explain the potential related service needs
• Brakes, shocks struts, tie rod ends, alignment,
  etc.
• Quote complete tire price and offer options if
  available

workbook page 6
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Selling Tires and Related Services

• Close
• The Assumed Close (assuming the sale is made)
• Ms. Jones, I have the 4 tires you need for your
  car in stock. It will take about 90 minutes to
  mount and balance new tires on your Maxima. Did
  you want to wait or should I call you later?
• Or, Mr. Smith, It looks like we can install new
  tires for your vehicle while youre having your
  other service work done so you wont be without
  your car another day. Sounds good?
• The Secondary Close (closing on a minor point)
• Ms. Jones, did you want the Michelin or Dunlop
  tires we talked about?
• The Relevant-Story Close (a self-given reference)
  
• Ms. Jones, I had a customer who was hesitant but
  followed my advice and got their tires here and
  was very pleased. They saved themselves a lot of
  time, frustration, etc.

workbook page 6
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Selling Tires and Related Services

• Educate for future sales
• Promote the dealership
• Remind the customer why it is best to buy tires
  from you
• Document tire conditions on RO and/or mirror
  hanger
• Talk to your customers about tires every visit
• Plant the seed for future sales
• After-the-sale reminder
• Federal law requires tire retailers to distribute
  a DOT
• registration card to the tire customer or
  register online.

workbook page 6
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Selling Tires and Related Services

• Address any customer objections workbook page 7
• What are your customers most common one or two
  reasons not to buy?

• Wants to shop or compare
• Selling vehicle or vehicle near lease term end
• Wants specific brand not available
• Price too high
• No time
• Disputes that tires needs replacing
• Need to check with spouse, parents, etc.

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3 Ways To Order Tires

• Nissan Tire Advantage online via NNAnet.com
• Toll-free phone number
• Nissan 866-NNA-TIRE
• Fax [phone]

workbook page 7
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Review Section 3 Selling Tires To Your Service
Customers

• Why people buy from your dealership Convenience,
  Expertise, Right Tire
• Preparation
• Tread and pressure gauges, Retail Selling, Guide,
  Product Screen, Tire Guide
• Inspection
• Listen. Ask questions. Listen. Discuss.
• Recommend a solution based on findings.
• Close.
• Overcome objections.
• Educate for future sales Plant the seed
• Ordering tires

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Section 4 Course review workbook page 8

• Questions and comments
• Useful information I learned today
• What I need to re-visit and learn more about

Section 5 Training review/evaluation workbook
page 8 Your feedback is important to us. Please
log-on to http//nissansurvey.knowbase.com/dtsur
veys/nissan.asp You will be automatically
entered for a monthly prize drawing.
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The Nissan Tire Advantage Program(end of Tires
101 presentation)