SOURCEOOK 2016 Market Profile: Service Equipment Service .

TRSOURCEBOOK 2016Market Profile:ServiceTraditionally, Tire Review has paired service datawith tire market data in one section. In 2016, wedecided to break the information apart from the tiremarket information to help tire dealers realize thefull potential of the service side of their business.All information is Tire Review research unlessotherwise noted. Direct any questions to PattiRenner at prenner@babcox.com.SummerStill the Strongest For Service SalesConsumer Tire SalesWinter8%10%Auto Service SalesSpring28%21%Summer27%35%Fall18%4%Level all year19%31%40 TIREREVIEW.COM AUGUST 2016Service EquipmentTire DealersLease/Own(2016 data (2015 results). More than 100% due tomultiple responses)97% (95%)Air compressor95% (94%)Alignment rack95% (96%)Tire changer: standard94% (94%)Computerized tire/wheel balancer94% (92%)Tire changer: euro style91% (85%)Battery tester/charger89% (89%)Above-ground lift89% (87%)Brake lathe: off-vehicle88% (85%)Parts cleaner88% (78%)TPMS reset/recalibrate tool82% (80%)Engine diagnostic analyzer80% (92%)A/C refrigerant recycler77% (67%)Service truck69% (67%)Brake lathe: on-vehicle67% (54%)Nitrogen inflation system41%Tube benders(39%)

TRSOURCEBOOK 2016Tire Dealers Do A LOT of Service Work!(Total service jobs by U.S. tire dealerships performed in 2015)Alignment. 25,889,019Fuel/Air Sensors (MAF/MAP). 1,487,947Alternator.991,965Hoses (Coolant). 1,983,929Automatic Transmission MaintenanceHVAC A/C Compressor.815,615(Flus/Filter). 1,157,292Axle (CV Joint/Full Axle). 2,883,600Battery. 4,306,549Belt (Serpentine/V-Belt Tensioner). 3,747,455Belt Tensioner.991,965Brake Pads. 13,336,413Brake Caliper. 2,700,348Brake Line/Hose. 1,794,147Brake Rotor. 9,335,214Catalytic Converter.495,982Clutch (Manual Transmission).232,262Coolant Flush Fill. 1,991,965Ignition Coil. 1,543,056In-Tank Fuel Pump.854,192Bulbs. 6,943,742Oxygen Sensor. 2,204,366Radiator. 1,102,183Shock & Struts. 3,865,675Spark Plugs. 4,408,731Starter. 2,231,920Suspension Steering Rack/Gear. 1,322,619Suspension Air Ride.881,746Suspension Components: Ball Joints,Bearings, Tie Rods, Control Arm. 11,956,244Diesel Injection Engine Repair.275,546Thermostat. 1,680,929Engine Replacement (Crate/Reman).122,044Timing Belt.761,310Engine Sensor (Crank/Cam Position/Knock/Tire (mount & balance). 28,326,099Temperature).716,419Exhaust System(Muffler/Pipes/Flex Joints). 1,653,274Filter (air). 4,408,734Filter (cabin). 2,424,802Filter (fuel). 1,212,401Filter (oil). 38,678,583(Source: Babcox Research)42 TIREREVIEW.COM AUGUST 2016TPMS Relearn. 16,753,179TPMS Sensor Replacement. 1,983,929Water Pump. 1,157,292Wheel Bearing Conventional(Press/Cartridge/Tappered). 1,377,729Wheel Bearing Hub Unites. 2,416,383Wiper Blades. 10,140,041

TRSOURCEBOOK 201658.2% (77%)Website73.1% (61.2%)Word of mouth50.7% (47.1%)Social media25.4% (43.4%)Direct mail28.4% (39.7%)Newspaper ads29.9% (38%)Yellow Pages25.4% (34%)Radio adsSmartphone apps/mobile28.4% (20.6%)Community service(27.6%)2016 88.602015 87.502014 85.102016 91.302015 88.402014 86.90Employee Compensation 2016Salary28.4% (27.3%)23.9Passanger Vehicles2016 data (2015 results).More than 100% due to multiple responsesAverage Labor Rate per HourCommercial VehiclesHow DealersAdvertise/Promote13.4% (9.4%)17.9% (8.8%)Hourly Wage(3.5%)18%6%17%100% Commission30%Yearly Bonus32%Profit SharingReminder cardsCable TVLocal TVTechnician14%30%Salary & Commission49%Hourly Wage100% Commission22%Yearly Bonus22%Profit SharingField sales forceSalary4.5%56%Salary & CommissionSalary16.4% (9.4%)ManagerTelemarketing22%Sales11%50%Salary & CommissionHourly Wage20%100% CommissionYearly BonusProfit Sharing44 TIREREVIEW.COM AUGUST 201660%35%33%

TRSOURCEBOOK 2016Key Factors in Choosinga Repair Part BrandHybrid VehicleSales By State1. Quality/fit/function(registered vehicles)2. AvailabilityCalifornia. 145493. 146302Florida. 31236. 27033Texas. 26387. 20281New York. 25385. 20122Illinois. 19832. 14631Washington. 14880. 13554Pennsylvania. 14158. 10690Virgina. 13602. 10085North Carolina. 12843. 10004Ohio. 12575.9667Other. 183030. 135707State.2014. 20153. Product engineering4. Full line coverage5. Lifetime warranty6. Strong brand nameTOTAL.499421.4180767. Informative catalog8. Used by OEMsWhere DealersGet Service Parts35.3%25.4%22%-Local partsjobber(NAPA, etc.)-Warehouse partsdistributerState.2014. 2015California. 29536. 08.2340Florida.2213.2219Oregon.1362.1638New York.1084.1346Illinois.1044.1324New Jersey.900.1288Hawaii.880.1014Other.9517. 10818Fuel TypeBy Volume(Source: IHS Markit)(registered vehicles)-Local partsretailerFuel Type.2014. 2015(AutoZone, etc.)Hybrid. 499421. 418076-Order online4.4%-Tire company3.91.2%-Car dealer (OE parts)%(registered vehicles)TOTAL . 62218.658485.9%EV VehicleSales By State(Source: IHS Markit)- Direct frommanufacturer46 TIREREVIEW.COM AUGUST 2016Conversion.118.128Diesel. 506766. 489624Electric. 62218. oline.12946264.14184553Natural Gas.2639.1600All Fuel Types.16330687. 17188971(Source: IHS Markit)

TRSOURCEBOOK 2016Vehicle Registration, Sales & MileageU.S. VEHICLE POPULATION, (2002-2016)(million of vehicles)YearCarsLT/SUVsClass 4-6 TrucksClass 7-8 TrucksTotal Vehicles2011 .121,372 .128,102 .2,493 . 4,185 .256,1522012 .119,533 .129,188 .2,867 . 4,817 .256,4052013 .118,625 .130,224 .2,845 . 4,993 .256,6882014 .119,631 . 132,970 . 2,629 . 4,490 .259,7202015 .120,941 .136,969 .2,704. 4,652 .265,2662016 .121,984 .142,091 .2,903 . 5,071 .272,048(Source: Auto Care Association)U.S. NEW VEHICLE REGISTRATIONS(In 142015Class 4-6.10.12.13.14.15Class 7-8.21.25.24.28.32Total.32.37.38.43.48TOTAL VEHICLES:Year20112012201320142015(Source: Auto Care Association)U.S. VEHICLE MILES DRIVEN(in trillions of miles traveled)12.9814.6815.7616.7617.6648 TIREREVIEW.COM AUGUST 2016Year. 3.040(Source: U.S. Dept. of Transportation)AVERAGE AGE OF CONSUMER VEHICLES(in years)LightYearCarsTrucksAll 611.6(Source: Auto Care Association)10.8

Vehicle Registration, Sales & MileageU.S. TOP 10 PASSENGER CAR SALES(Based on 2015 C-Y New Registrations)Make/Model20142015YoY ChangeToyota Camry429,553424,179-1.3%Honda Accord389,460353,515-9.2%Honda Civic326,644333,3132.0%Toyota CorollaNissan AltimaFord Fusion337,521332,864307,191Hyundai Elantra Sedan190,780Ford Focus223,276Hyundai SonataNissan SentraTop 10 Passenger Car SalesTotal Passenger Car SalesTop 10 as a Percent of Total 7%U.S. TOP 10 LIGHT TRUCK SALES(Based on 2015 C-Y New Registrations)Make/Model20142015Ford F-Series700,095727,846Dodge Ram422,922432,986Chevrolet SilveradoHonda CR-VToyota Rav4Ford EscapeChevrolet EquinoxFord ExplorerGmc SierraJeep Grand CherokeeTop 10 Light Truck Sales TotalTotal Light Truck SalesTop 10 as a Percent of Total ,859176,204YoY ,835,78312.1%(Source: Auto Care Association)TIREENSANITYMARKET PROFILE 49

Gmc Sierra 211,8595.6% 223,645 Jeep Grand Cherokee 176,20422.3% 215,526 Top 10 Light Truck Sales Total 3,393,2338.5% 3,681,184 Total Light Truck Sales 8,777,04612.1% 9,835,783 Top 10 as a Percent of Total Sales 38.7% 37.4% (Source: Auto Care Association)