Michelin has announced that American Tyre Distributors (ATD) will no longer be an authorised distributor of its tyre brands. This is the second major tyre manufacturer to announce the move this month.
In a letter to tyre dealers dated 16 June, Stephen Hoeft, vice president of B2C sales for Michelin North America, said that as of 1 July, ATD will no longer be an authorised distributor and dealer for the Michelin brand.
This means that purchases of Michelin-branded products from ATD will not qualify for the company's Affiliate Partner Dealer Programme and therefore will not be eligible for dealer benefits under the programme.
This realignment apparently covers all Michelin brands in the passenger car, light truck and commercial vehicle segments, including Michelin, BFGoodrich and Uniroyal brands, as well as Camso and Tweel products. On the same day, Michelin circulated another letter to dealers specifically mentioning these commercial brands. The letter stated, 'We understand that changes in the supply chain require adjustments and we are committed to supporting you during the transition.'
The letter sent to dealers also added: 'Michelin will monitor the transition process and reassess as needed.'
Michelin will help dealers who may need to 'find the nearest authorised distributor' without specifically mentioning National Tire Wholesale (NTW). The distribution company is operated by TBC. In 2018, Michelin became a co-owner of TBC.
In addition, 'Alliance Partner Dealers' will receive 'special promotional opportunities' from 1 July: $20 for each Michelin tyre sold, $15 for each BFGoodrich tyre, $10 for each Uniroyal tyre sold, and $10 for each Uniroyal tyre sold. Uniroyal tyres will receive $10 per tyre.
In early June, Goodyear announced that ATD was no longer a distributor for two of its brands, Cooper and Craft Mastercraft.
With the completion of ATD's bankruptcy restructuring, the tyre company's cooperation with ATD is changing.