Commercial Tyre JV Company Between Goodyear and Treadco
Goodyear Tire and Rubber has announced a joint venture agreement with Treadco, which combines the companies’ commercial tyre service centres, making the new company the largest network of cv tyre service outlets and retreaders in the world. The new company, called Wingfoot Commercial Tire Systems will be owned 60 per cent by Goodyear and 40 per cent by Treadco. Treadco can, at any time between April 30th 2003 and April 30th 2004, sell its entire jv interest to Goodyear for a price of 72.
5 million. Equally, Goodyear has the right (between 30.4.
2003 and 31.10.2004) to buy Treadco’s jv interest for a cash sum of $77.
5 million. Included in the joint venture are Treadco’s service and retreading centres, Goodyear’s commercial tyre service centres and the Goodyear-owned Brad Ragan Inc commercial tyre centres, forming 194 commercial tyre and service centres, 77 retreading plants and some 3,000 employees, offering coast to coast coverage. Turnover in the first year is an estimated $650 million.
The headquarters will be in Fort Smith, Arkansas and the chairman and chief executive officer will be John R. Meyers. Michael R.
Thomann will be president and chief operating officer. The joint venture with one of the USA’s largest independent truck tyre dealer/retreader marks a major step forward for Goodyear into the truck tyre service industry. Said Goodyear chairman Sam Gibara: “This joint venture is in line with our corporate strategy to get closer to the customer in providing products and services at the end user level.
” The agreement, he said, will make Wingfoot “the leading provider of new tyres, retreads and commercial service in the global truck tyre industry.” John Polhemus, Goodyear’s president, North America Tire, was equally enthusiastic, saying that Wingfoot would be able to fulfil the needs of trucking fleets large or small. He went on: “This will be accomplished under the Truckwise umbrella, which promotes new tyre sales, retreading and truck service.