Tire Dealers Leading the Way to Help Public Complete Federally Mandated Tire Registration Process

Concern Over Safety Issues Driving the Dramatic Increase


AKRON, Ohio, Nov. 11, 2004 (PRIMEZONE) -- Tire dealers are helping to make the public more aware of a federal mandate of the National Highway Traffic Safety Administration (NHTSA), that requires retailers to register every tire that is sold, says CIMS, Inc., the world's largest private tire registration firm.

"In the last two years, tire registrations have increased 48 percent," said Paul J. Kruder, president of CIMS, Inc., the company that provides tire registration services to tire manufacturers, brand owners and dealers. "The overwhelming majority of those registrations are coming from independent tire dealers, at their own expense. Those dealers deserve a great deal of credit for accepting the responsibility of helping tire purchasers register their tires."

Kruder said the increase is due, in part, to tire dealers taking a more active role in support of the NHTSA law, Federal Motor Vehicle Safety Act (49 CFR Parts 574.7-574.8), in the interest of tire and overall automobile safety.

"The law was introduced in the early 1970s, but the recent passage of the TREAD ACT and the importance of timely notification to the consumer has combined to create an enhanced awareness of the mandate," said Kruder.

The law requires tire retailers to provide tire registration forms to purchasers and, in turn, the customers can voluntarily mail in the completed forms to the tire manufacturers so they can be easily contacted if their tires are recalled for defects or other safety issues.

"The dealer knows that it is just good, responsible business to be concerned about safety," said Kruder. "The bottom line is that -- from the manufacturer to the consumer -- everyone knows it's critically important to get the potentially unsafe tires off the road as quickly as possible if there is a recall. It's a safety issue."

Kruder said the tire dealers who are aware of the law, and are consumer-conscious, are even taking an extra step to assist their customers with the registration process.

"Those dealers are providing support right at the sales counter when the tires are purchased," said Kruder. "It's a great process because, for the most part, the capabilities of completing the registration process are built-in to their existing system right at the point-of-sale."

"They recognize that using their POS (point-of-sale) system is a convenient, economical way to register every tire they sell," he said. "In addition, dealers are saving their customers the significant cost of mailing the registration form back to the registration center."

The reason for the increase in POS is logical, according to CIMS.

"Most of these tire dealers already have a staff capable of modifying their own POS software to handle tire registrations, so it's not a duplication of effort," said Angela Trayer, CIMS director of information technology. "We believe this is a solid trend that will continue over the next several years."

Another reason for the increase in registrations is enhanced consumer awareness of safety and proper vehicle maintenance -- especially for tires.

"Drivers are becoming increasingly aware of the importance of keeping their vehicles in top-notch condition," said Kruder. "This awareness starts right where the vehicle comes in contact with the road -- the tires."

"Several organizations are proactive in dealing with automotive and tire safety," said Kruder. "AAA is one of those organizations, and they continually promote safety to the driving pubic."

Kruder said that replacement tire sales numbered 243.8 million in 2003, and his company estimates that tire marketers who use the CIMS All-Brand form or their POS system to record the tire registration information, sold 140.6 million of those tires. CIMS estimates that more than 80 million (57.2 percent) of these tires are being registered.

"By significantly increasing the number of tires registered," Kruder said, "the tire manufacturers increase their ability to notify more tire purchasers directly in the event of a safety campaign.

"Speed, efficiency and the safety of their customers are critical to a manufacturer in this process. The registration helps remove potentially unsafe tires from the highways.

"Ultimately, tire manufacturers, tire dealers, brand owners and the consumers realize that when tires are registered, the system works."

From a base of more than 500 tire dealers in 2000, CIMS estimates that more than 1,200 independent tire dealers representing more than 15,000 retail outlets today use the CIMS All-Brand Tire Registration System.

Based in Akron, Ohio, CIMS is a privately owned, independent company that has provided products and services to tire manufacturers, brand owners and tire dealers to facilitate the entire tire registration process for more than 30 years. The company exists to help its clients effectively comply with and minimize the cost of the record-keeping requirements of the NHTSA regulations.

For additional information, visit the CIMS web site at www.cimstireregistration.com.



            

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