You can call Morry Taylor many things, but “quiet” would not be among the options available for description. Bloomberg, via the Financial Post, has Mr. Taylor on record, stating that Titan owes its woes in the 63″ tire market to low air pressure. More than that, the report has him blaming dealers for the problems. The quote from the article resides below:
“The tire dealers up there demanded a 7% to 10% kickback, but I refused to pay it,” Taylor said. “If you don’t give them some money, they let a little air out of your tires, and no one sees it.”
So, to salvage the tire’s reputation, he is now outfitting every unit that a tire is put on with a $2700 air pressure monitoring unit. In the meantime, he has halted production on the tire line for a few weeks, and is going on a goodwill tour of the Canadian Oil Sands.
Now, I’d like to take a moment to analyze some of Mr. Taylor’s statements. There seem to be some logical disconnects in his version of the story, and honestly, it makes me mad that he thinks people are stupid enough to believe him.
Let me put a hypothetical to you:
I am the Chairman a publicly held company, who is trying to break into a highly profitable market. My product is untested at this point, and I am launching a grand pilot project in Canada. This project has the potential to increase my company’s income, boost shareholder earnings, and possibly give Michelin and Bridgestone a great reason to run and hide.
The only thing standing in the way of accomplishing all 3 of these things is some “ghost” dealers who want a kickback of 7-10%, for a short term project. Once again, this will affect your tire’s reputation for years to come. This is what everything hinges on: 7-10%.
I have a reputation as a Union buster, so I’m used to playing hardball. I am also aware that if I do not pay, these dealers could do something to embarrass my company.
I am incensed by this, and by refusal to pay these short term fees, I endanger BILLIONS in future revenues.
Does that make me:
A. Legendary
B. Nearsighted
C. Arrogant
D. All of the above
While the scenario outlined above sounds probable in hindsight, it doesn’t work out well, given the constraints that dealers were operating under at the time. Dealers around the world were itching to get their hands on some 63″ tires. Michelin and Bridgestone were backordered for 13-18 months or more in this size. The idea of anyone proposing a kickback on the tires would be ludicrous. They would have been greatful for any amount of allocation they could get.
The fact that Morry Taylor won’t name these folks is another reason to be dubious about such claims. In fact, it sounds like he is trying to pawn off any responsibility on an imaginary enemy. The Boogeyman evidently vacated his usual place of residence (a closet), and has taken up residence in the tar sands.
We are already aware of design flaws in the first batch of 63″ tires Titan released. Is it so far-fetched, then, to believe that the first batch or so had a few extra engineering issues? Would it be so hard for Titan to say ” We attempted something that no one else did. We produced a functioning 63″ tire in record time. Along the way, we made a few mistakes. We’ve fixed those, and now we’d like you to give our tires another shot.”
Hubris is an expensive flaw. Blaming others appears to be an inexpensive solution. The only problem is, people know when you are throwing your sins on a scapegoat.
Until Mr. Taylor names the dealers in question, his story will be both flimsy and suspect. Frankly, I expected a more plausible excuse. To be more frank, I should have downgraded my expectations.
Stay tuned. We’ll keep you up to date on the latest news affecting the tire and mining industries.
Until then, we’ll be…
Signing off…
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{ 3 comments… read them below or add one }
FROM DAY ONE I SAID THAT THE TIRE WILL NOT PERFORM, WHEN I SPOKE TO HIM AWHILE AGO TO BUY THE 63″ HE WAS NOT PREPARED TO GIVE A WARRANTY WITH THE TIRES, FOR YEARS HE BEEN BALL S*****G HIS WAY IN THE TIRE INDUSTRY BUT THE FACTS ARE THAT THE GUY HAVE NOT GOT A CLUE ABOUT TIRES.
THE ONLY THINK THAT IS GOOD FOR IS BEING RUDE AND SWEAR AT EVERYBODY ON THE PHONE.
AS FAR I AM CONCERNED THE GUY SHOULD BE OUT OF THE TIRE TRADE.
THANK YOU
Sorry it has taken me so long to respond to your comments on the Titan article you posted on August 24, 2009, titled “Morry Taylor Blames the Boogeyman for Titan’s Woes.”
I appreciate your attempt to compose a story based on something you read from another storyteller. Now I’ll give you the opportunity to analyze my statements. You should help our President — he needs the help, but first let me give you some facts.
For the Bloomberg story, the young reporter traveled to Fort McMurray, I assume, because that is where the oil sands are. He didn’t talk to anyone from a mining company; he talked with a tire dealer who represents Michelin and Bridgestone. Did you know there is only one tire dealer, and that dealer represents both companies? This same dealer was serving all tires at a majority of the mines. This dealer wanted to represent Titan also, which would be a 100% monopoly. The mining company, however, wanted to deal directly with Titan, with no kickbacks to dealer. The other tire companies are now dealing directly with mines, but returning a fee to the dealer.
This may shock you, but the first giant OTR tires Titan shipped had sensors in them to track air pressure and temperature information, and then transmit the information electronically to an Internet location. These tires ran over 4,000 hours. The competitors were running approximately 5,000 hours. Did you know the first failure was a result of the wrong bead seat band used on the wheel? The band was 4” wide, which is not to be used on any 63” tire. Titan tires have 6.75” beads. This means failure in a short time. You, my friend, can guess whether it was an accident or on purpose.
Titan put some sensors in additional tires. Through the data, we were able to show the mine the point at which the truck stopped and one tire’s air pressure dropped to 20 PSI. The truck started up and the tire heated up, driving pressure up. There was no other pressure lost. You guess what happened, my friend.
As chairman and CEO, I like to see Titan products in the field. I don’t sit in an office and make orders. I’m not a union buster. Titan management runs its factories, not a union committee.
You mention I would not name the dealer. You are correct. Why should I? If you knew anything of the oil sands or if you talked to Michelin or Bridgestone, you would know.
The design of Titan’s 63” is great. Did we build it to be robust? Yes. Did we build it too robust? Yes. Did we change fast? Yes. Is heat the biggest problem? Yes. Do Titan competitors have problems? Yes. They are working to improve and so are we.
No one makes more mistakes than me, but I don’t repeat them and I don’t blame others. I just recognize the problem and move to eliminate it. In the oil sands we have a dealer who will grow over time to be the best, and Titan will help him.
In closing, if you ever want to visit one of our factories, let me know.
In reply to the comment from S.ERRI…
Well I’m sorry to say that you are 100% wrong. The tire works, and why would you be talking with me about tires instead of our VP of OTR sales, Paul Hawkins. If I have been B.S.-ing my way into the tire industry, we’ve done a fair job. Plus you wouldn’t know B.S. from facts. I can build a tire, can you? I’m sorry if I was rude to you. If I talked with you, I should have known what a sensitive man you are. You are correct, I can swear; but I do not use the Lord’s name in vain. I keep it to man’s special four letters. I don’t plan on leaving for a long time, so I hope you are a young guy and I sign my name to what I say and do.
Morry Taylor