Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • HUMANITARIAN
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
July 02, 2001 02:00 AM

Conti, Yokohama to form joint venture

Bruce Davis
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    HANNOVER, Germany-Continental A.G. and Yokohama Rubber Co. Ltd., technology exchange partners since 1987, have agreed to cooperate more closely in tire marketing and manufacturing.

    Pending completion of the deal later this year, Conti and Yokohama will set up a joint venture in Japan to promote sales of the companies' tires to Japanese vehicle makers, and Conti will make capacity available in North America for the production of Yokohama-branded car tires in 2002, according to a company spokesman.

    Conti and Yokohama executives signed a letter of intent covering their agreement June 25.

    Among the key provisions are stronger cooperation in tire production-particularly in the North American Free Trade Area-and on technological collaboration, Continental said.

    For its part, Yokohama will support Conti's efforts to build market share in the Japanese replacement market, Conti said. It's possible that Yokohama could make Conti-brand tires in its Asian plants, the spokesman said, but that's not considered a high priority at this time.

    In addition, the companies will evaluate opportunities for synergies, including joint purchasing of raw materials. The spokesman said it was premature to discuss the companies' projected savings from joint purchasing.

    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.

    The companies have no plans now for any cross-ownership, but the spokesman said that could be a possibility in the future.

    Continental has no original equipment presence in Japan currently, the spokesman said, while the company's aftermarket presence there amounts to 200,000 units, or only about 0.5 percent of the market. Conti brand tires are imported and marketed in Japan now by the Yanase trading company.

    By allowing Yokohama to get involved in aftermarket distribution of its tires, Conti hopes to build sales there to a million units or more in the coming years, the spokesman said.

    Regarding OE contracts, Conti hopes establishing a presence in Japan will open up contracts for Japanese car companies' global platforms, the spokesman said, which could pave the way for supplying these companies' subsidiary assembly plants in Europe and North America. He cited increasing cooperation between DaimlerChrysler A.G. and Mitsubishi Motors Ltd. as an example of global platforms.

    Details of the planned alliance will be finalized during the second half of the year.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Goodyear to trim jobs amid 'uncertain' economic outlook
    2
    Goodyear to upgrade Cooper plant in China
    3
    Executives on the move: Hankook promotes key U.S. positions
    4
    Our View: Early look at tire industry in 2023
    5
    Yokohama secures OE fitments on 2023 Prius models
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • HUMANITARIAN
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION