Strong new car sales lead to better replacement tire demand

摘要

No snow - that was the problem for dealers in northern climates in December as retail tire sales at those dealerships were very weak. Some reported to me that comp store sales volumes last month declined bymorethan 15%. Wow. While dealers in more temperate climates didn't have the snow issue, sales remained sluggish nonetheless as miles driven have continued to decline by about 2% vs. the same months a year ear-lier. While I still predict that 2012 volume at retail will improve, it is more likely to begin in 2012. As I noted last month, strong new car sales lead to better replacement demand, and it is the continuing strength in new car sales that leads to my guarded optimism for replacement tire sales this year.