Continental Tire the Americas is recalling more than 90,000 Continental, General Tire and Barum tyres in North America that have been over-cured and are thus at risk of developing breakages in the sidewall area. A separate recall of approximately 12,000 Cooper and Mastercraft tyres in North America is taking place due to a possible low tread gauge in the tyres’ shoulder slot area which could cause tread separation and sidewall failure.
The day after Goodyear announced that it is buying Cooper Tire for north of $2.5 billion, Fitch Ratings affirmed its Long-Term Issuer Default Ratings of The Goodyear Tire & Rubber Company (GT) and its Goodyear Europe B.V. (GEBV). Fitch also affirmed its ratings on a number of specific funding lines. Both moves can be interpreted as partially affirming the Goodyear Cooper acquisition’s strategic logic – something that was described as compelling by the senior executives of both companies.
Explaining the rationale behind Goodyear’s multi-billion dollar acquisition of Cooper Tire, executives said the combination offers “compelling strategic and financial benefits”. Specifically, they suggested the transaction “further strengthens Goodyear’s leading position in the US, while significantly growing its position in other North American markets.” With just two home-grown domestic tyremakers in the US (Goodyear and Cooper), that much is clear. However, the benefits of the announced merger are not limited to North America. In China, the combination will almost double Goodyear’s presence. According to Goodyear, it will also increase the Akron, Ohio-based tyremaker’s OE tyre supply position, while creating broader distribution for Cooper replacement tyres through Goodyear’s network of 2,500 branded retail stores.
The Goodyear Tire & Rubber Company and Cooper Tire & Rubber Company have made “a definitive transaction agreement” that will see Goodyear buy Cooper for roughly $2.5 billion. The combined company will have approximately $17.5 billion in pro forma 2019 sales. Upon closing of the transaction, Goodyear shareholders will own approximately 84 per cent of the combined company, and Cooper shareholders will own approximately 16 per cent.
Hankook Tire’s US subsidiary is working with advanced smart tyre technology and predictive data analytics company Revvo Technologies on a pilot programme that will integrate Hankook SmartFlex tyres with Revvo’s product suite to provide critical tyre-specific data. Data generated, such as real-time alerts, will benefit Junk King, North America’s top-rated eco-friendly junk removal and hauling company.
The dream of securing natural rubber supplies in the vicinity of production facilities and reducing dependency upon hevea rubber plantations has preoccupied Bridgestone Corporation for the past decade. Early in 2018 it announced a collaboration with genomic big data company NRGene to advance the commercialisation of guayule, and today Bridgestone shared the results of this four-year project. The combined effort has resulted in the partners successfully assembling a specific guayule genome.
Marko Ibrahim is the new president of Bridgestone Retail Operations (BSRO), the Bridgestone Americas subsidiary responsible for operating a network of more than 2,200 tyre and vehicle service centres across the United States of America. He succeeds Joe Venezia, who led the organisation since 2017 and has stepped down to pursue a leadership role outside of Bridgestone.
With a new warehouse in Ancaster, Ontario, Bridgestone anticipates serving tyre dealers and customers in Canada with greater agility. The CA$65 million (£37.7 million) facility can hold up to 570,000 tyres and enables Bridgestone Canada to reduce transportation costs and shorten time-to-market for products in the country’s eastern region.
Pre-Q Galgo Corporation has hired Ron Elliott to be its marketing manager in North America. In his role, Elliot will be responsible for leading the marketing direction of the long-term growth strategy for the Pre-Q Galgo brand throughout the United States and Canada.
A new all-Porsche racing series commences in the USA and Canada next year, and Yokohama will serve as control tyre. The Porsche Sprint Challenge North America is a three-class series contested by the current and previous generations of Porsche 991 GT3 as well as the 718 Cayman Clubsport. All cars will race on Yokohama Advan racing tyres, with the Advan A005 slick the rubber of choice on dry tracks and the Advan A006 serving as wet weather tyre.
Sumitomo Rubber North America is set to increase prices the price of Falken and Ohtsu branded passenger, light truck and medium truck tyres in the US and Canada on as well as implementing inline adjustments on a per size basis.
Camso, the off-road tyre specialist acquired by Michelin in 2018, has grown its off-highway transportation tyre service and distribution presence in North America with the acquisition of two material-handling solutions businesses from Metro Industrial Tires. These businesses are based in Chicago and provide service to the market via their own press truck fleets.
Accuride Corporation reported this week that three of its facilities, including two of its wheel plants, have received 2019 Masters of Quality awards from Daimler Trucks North America LLC (DTNA). The awarded plants are the Accuride de México facility in Monterrey, which supplies DTNA with aluminium and steel wheels and is a seven-time awardee; the Henderson plants in Kentucky, USA, which supplies DTNA with steel wheels and is a three-time award recipient; the Rockford factory in Illinois, USA, which supplies Gunite wheel hub, drums, and brake rotors and is a fifth-time awardee.