HANNOVER, Germany (June 25, 2001)—Continental A.G. and Yokohama Rubber Co. Ltd. have agreed to bring their global tire activities more closely together, starting with a joint venture in Japan to be set up this year to promote sales of the companies' tires to Japanese vehicle makers.
Conti and Yokohama executives signed a letter of intent June 25.
Among the key provisions are stronger cooperation in tire production—particularly in the North American Free Trade Area—and technological collaboration, Continental said. For its part, Yokohama will support Conti's efforts to build market share in the Japanese replacement market, Conti said.
In addition, the companies will evaluate opportunities for synergies, including joint purchasing of raw materials.
Conti Chairman Stephan Kessel said the deal will enhance both companies' competitive positions and expand the reach of their respective products to the global automotive industry.
Details of the planned alliance will be finalized during the second half of the year.