Giti focuses on 'working with distributors'

Giti Tire (USA) Ltd. continues to reap the benefits of its new plant and relocated technical center in Chester County, S.C., according to Jim Mayfield, senior executive vice president of sales and marketing, who responded to a questionnaire provided by Tire Business.

Q: With the year nearing its halfway point, how would you describe business thus far in 2018?

A: Uncertainty of government trade policies (around the world with governments of the larger nations, not just the U.S. government) are contributing to uncertainty in the market. It has created opportunities for many and threats for others. The market has continued with more consolidations both in the upstream and downstream.

Q: What are some of the pleasant surprises you are seeing in the industry? What has surprised you most?

A: Continued improvement in economic outlook. Consumer confidence is on the rise. The JV announcements of Michelin with TBC and Bridgestone and Goodyear to form NTW and TireHub surprised many in the tire industry. They could potentially be market shapers and the spark that disrupts tire industry distribution and level of services.

Q: Where do you see the industry markets heading during the last half of 2018?

A: Continued consolidation of distribution in the retail segment and on-shoring of manufacturing to mitigate rising trade protectionism by G20 countries and others around the world.

Q: What kind of trends are you seeing in the marketplace? How is your company reacting to them?

A: More focus on individual brands within the distribution channel. We are continuing to focus on working with distributors who bring value to market and value to our brand while demonstrating value to each step...from manufacturer to the end user.

Q: What sectors look to be strong? Are they sustainable for the future?

A: In the PLT arena: CUV/SUV and P-metric light truck applications.

Q: What sectors are struggling? Do you expect them to rebound? How soon?

A: Broad market passenger, especially in the less than 16-inch rim diameters. The potential rise of the smaller rim diameters would necessitate a tire for the commuter autonomous fleets carrying multiple passengers as the equivalent of van pools or shuttles.

Q: Has the threat of tariffs affected your business one way or another? How so?

A: The threats of tariffs in the U.S. and in other regions of the world create confusion, disruption and hesitancy in almost every portion of the tire industry, from raw material companies, through manufacturers, wholesalers and retailers to the end-user or consumer.

Q: Do you foresee any price hikes in the second half of the year?

A: From an industry perspective, any and all hikes are dependent upon the market conditions and the environment in which we do business.

Q: Can you provide an update on the new plant in South Carolina? How many employees are at the plant? How close are you to first-phase capacity of 5 million passenger and light-truck tires?

A: We have more than 500 team members as of April 2018, and we are continuously looking for talented and experienced candidates. Candidates can submit their resume to [email protected].

Ramping up production of a brand new plant is hard work and very complex. We have dedicated teams working, improving and training our workforce with Giti manufacturing processes using advanced automation, machinery and equipment. We are working diligently, and every month we have increased our production at Giti Chester plant. We will be working hard to achieve our goals.

Q: What is the advantage of relocating the Giti North American R&D Center to South Carolina, next to the plant?

A: Several advantages. Being close to the manufacturing, we are more responsive and quicker to any issues as we work closely with the manufacturing engineers and QA in improving and establishing new and breakthrough process capabilities. Also, it is beneficial for the training of the younger R&D staff who are new to the tire industry and tire manufacturing processes.

Q: Giti USA recently was accepted as the 12th USTMA member. Why is it important to join that organization? How will it impact Giti's presence in the U.S.?

A: Since USTMA is "the" U.S. tire manufacturers association and requires a manufacturing facility in the U.S. to be a full member, being a part of this elite organization is a testament to Giti, a validation to the industry, including distributors, wholesalers, retailers and consumers that Giti is truly committed to the American market and our dealers and is here to stay.

Q: What kind of impact has antidumping and countervailing duties on passenger and light truck tires had on Giti?

A: As with the industry, the tariffs and the threats of tariffs have disrupted our business as it has others. We have an elephant as a part of our brand logo, primarily because of the elephant's key characteristics of strength, reliability, perseverance and intelligence. Some may even add resilience. Giti embodies these key characteristics, and we apply them to our business and the engineering and design of Giti products. We learn, improve and evolve through the tougher times, and increase our strength through overcoming challenges.

Q: What are some of the challenges of the industry going forward? What keeps you up at night?

A: The evolution of vehicles, consumers and technologies is continually accelerating. An example is in size proliferation and complexity. The next puzzle is the revolution occurring in the distribution channels. The industry is accustomed to very slow shifts and slow channel developments. What is happening today is very rapid and creates an environment similar to "musical chairs" for the dealers.

Q: Do you expect any major investments in the next six months?

A: No. We have just made a major investment in establishing a brand new tire manufacturing plant in Chester County, S.C.