MALVERN, Pa.-Twin Tire International Inc. (TTII) and Yokohama Tire & Rubber Co. have mutually canceled their agreement for the manufacture of the dual tire TTII hopes to market in the U.S. later this year. But the mutual parting won't keep the Twin Tire system from appearing in U.S. dealerships by the end of the year, TTII officials said, because the Malvern-based company has secured a production/research and development agreement for the Twin Tires with Avon Tyres Ltd.
``It was decided by both Yokohama and Twin Tire that it would be in both parties' best interest to cancel the agreement due to international monetary fluctuations and timing of production,'' said Richard J. Miesen, TTII president and CEO.
Instead TTII, a subsidiary of Vancouver, British Columbia-based ATS Wheel Inc., hopes to receive the first shipments of it's dual tire design from Avon during the third quarter, according to Lee Napier, TTII vice president.
ATS Wheel's production subsidiary, ATS International Operations LLC, is funding the agreement with Avon.
The Twin Tire system, which will carry a V-speed rating, an all-season tread design and a 45,000-mile treadwear warranty, puts two independent tires on a specially designed wheel.
The initial manufacturing agreement, which will produce about 150,000 tires in 1995, will supply P125/90VR16; P125/85VR16 and P105/85VR16 sizes fitting about 40 vehicle types, Mr. Napier said. Future plans call for additional production capacity in 1996 as well as 18-inch-wheel tires.
Although a number of dealers have expressed an interest in the tire, TTII will not begin signing distributors until the company has inventory, he said.
Eventually, the company plans to provide a marketing program with point-of-purchase materials, co-operative advertising and dealer training.
``Our plan is to have only one (dealer) in a market,'' Mr. Miesen said. ``We would rather have somebody that's going to make an effort (to sell the tire) than two guys down the block from each other slashing prices.''
The company plans to continue promoting the product during demonstrations held around the country, similar to its first event at the Texas Motorplex in Ennis, Texas, Feb. 13.
TTII also announced the appointment of four members to its board of directors: Gnana Gnanalingam, president of ATS Wheel; David James, former president of Pirelli Tire Corp.; Thomas Pumpelly, founder and former president of National Tire Wholesale and president of PCI Financial Group, a privately held marketing, manufacturing and distribution consulting firm working with TTII; and Kenneth Rice, president of Donald B. Rice Tire Co. of Cumberland, Md.
The four new members join Mr. Miesen and Tiang Seet, ATS Wheel director secretary, on the board. The firm expects to name three additional directors to the board during the second quarter.