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WHEEL PROS BUYS TSW WHEELS! (Is This GOOD or BAD For Our Industry?)

Raymond Feb 04
On today’s episode of Talking Mods, we’re going to talk about some interesting industry news that recently occurred. One of the things I mentioned in our introduction episode is that I’ll be covering the latest relevant industry news and give you guy behind-the-scenes information. As most of you may know—my name is Ron and I’m the owner and founder at ModBargains and during my journey, I have seen a ton of changes over the past 16 years in our industry (good and bad) and I continue to see it—obviously, I get to hear about it from other people that are in the industry with me and I get to know what’s happening. I get to see what’s changing in the landscape of our industry. And every so often our industry changes. So, of course, if you work in this industry or you are a consumer this will affect you—it’s actually some pretty BIG NEWS.

In the past couple of years, we had some pretty big conglomerates starting to happen in our industry. We had it happen with power performance companies such as Dinan. Dinan got bought up with Flowmaster, APR, Hurst, and a few other ones. A company by the name of MW Company had and carried brands like Forgestar, ADV.1, CCW, Weld, MOMO, and so on. That became a conglomerate in itself which ended up becoming a very big wheel organization and over the past few years you started to see it more and more and that leads to the very big one that happened last year—it broke the news in this industry and some of you might remember but it was a big conglomerate—Wheel Pros ended up making a $400 million dollar purchase of MHT. MHT (for those now aware) is a company that carried brands like Rotiform and basically, Wheel Pros acquired them. Wheel Pros is a MAJOR distributor for brands like Fuel, XD, and a lot of other off-road wheel companies. So they’ve got a big group of wheel brands underneath their name and that acquisition leads on to today’s recent news.

The LATEST (and greatest) news is that Wheel Pros have purchased TSW Alloy Wheels! Yes! We finally got to saying it, but really. This is MASSIVE news for our industry and it could lead to great things and opportunities or it could not be the greatest thing to happen. Anyways, TSW is a major wheel company that some or most of you might know. TSW has a lot of popular sub names—for example, if you own a Corvette the wheels go under Cray if you have an off-road vehicle it goes under Black Rhino, if you have a Mercedes it’s under Vandross and the list goes on and on. There are so many. TSW Alloy Wheels started out of South Africa and actually funny to mention, they’re our neighbors! The TSW Alloy Wheel headquarters is right next to us here at ModBargains in Brea, California. I’ve known the owners for quite some time now and I’ve been
involved with them in the past. Here at ModBargains, we’ve been selling their wheels but what’s really interesting about this purchase from Wheel Pros is that it was for $150 MILLION dollars! Yes, 150 MILLION. That is not a typo guys but this just continues to add onto the Wheel Pros line, making them even BIGGER. TSW is a company that was available to you through stores like discount tires—more of the mainstream areas. Perhaps TSW was not as niche enthusiasts that we would like to see but they’re more of a safer type of design, which would be the best way I could describe them. Although, they do have some out there designs they were always a good value highly well-distributed brand.
So, at $150 Million dollars this puts Wheel Pros now at an OVER $1 billion dollar revenue, wow! In JUST wheels! Now that changes our industry. This means that a lot of the smaller wheel companies that are out there could potentially get gobbled up. They could become oligopolies (opposite of monopolies) and there could be a lot more of this happening in the coming months and years in our industry. It could also be a good thing and it could be a bad thing. On the good side of it, you have these companies receiving more technology that they’re able to bring towards the other wheel lines. Also, you can potentially lose some of the entrepreneurship—so you lose some of the little ideas and the way they were operated rather than being run by major corporations because a lot of the stuff in our industry is founded and created by entrepreneurs who have great ideas and who genuinely want to push the envelope.
I wanted to share that information with you guys and we also uploaded a video to our Talking Mods youtube channel for those of you that prefer to watch it visually but be on the lookout for more industry news information as well as talks about car modifications—tips, tricks, and much more on our Talking Mods channel! Thanks again if you read this far as we do really appreciate each one of you stopping by our Talking Mods website and channel. We look forward to seeing you at the next one!
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