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
  2. News
November 23, 2004 01:00 AM

China still 'open territory'—Cooper Tire wants some of it

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

    LAS VEGAS (Nov. 23, 2004) — The prospects offered by a market with 600 million to 700 million consumers that is less than 5-percent motorized is too appealing to ignore, according to Cooper Tire & Rubber Co.'s top executive.

    Cooper intends to become a major player in the Chinese tire market, achieving a billion dollars or more in sales in the coming few years, said Thomas Dattilo, Cooper's president, chairman and CEO. That's despite having no direct ownership involvement there currently and getting involved in that huge market relatively late compared with the major global competitors.

    “It's still open territory,” he said during an interview with Tire Business at the recent Specialty Equipment Market Association (SEMA) Show in Las Vegas. “No one knows exactly how it will play out. It may not be how we distribute here. We're looking at a number of opportunities.”

    Mr. Dattilo declined to comment directly on possible partners but did acknowledge Cooper's ambitions there depend on an acquisition or joint venture to secure local production for the domestic market. Integrating Cooper's brands would follow.

    Stephen Girsky of Morgan Stanley's Equity Research agreed with Mr. Dattilo in that the “playing field is still wide open” and that there appears not to be a significant disadvantage to being a late entry to the competition there.

    However, Mr. Girsky said, “the question remains: 'Do you have to be in OE there to be competitive?' And if they choose to be in OE in China, it's hard then not to get involved in OE elsewhere. That would be a natural change in strategy for Cooper, and it would involve a different level of R&D, manufacturing, etc.”

    Mr. Dattilo acknowledged that Cooper might have to consider supplying OE tires in China in order to build brand equity, especially since the Chinese consumer is becoming very brand aware.

    “The distribution system is still quite disjointed,” Mr. Dattilo said, noting there are three distinct regions in terms of consumer products and no state control of tire distribution to overcome.

    Cooper is involved for now in a joint venture with Taiwan's Kenda Rubber Industrial Co. Ltd. and two off-take production agreements with Hangzhou Zhongce Rubber Co. Ltd.

    Findlay, Ohio-based Cooper owns 50 percent of the Kenda venture that's building a $200 million passenger and light truck tire plant in Kunshan, China, which should come on-stream by 2006 and turn out 10 million units annually by 2008.

    The companies' deal calls for the first production from that plant to be Cooper-branded for sale in the U.S., and Cooper recently strengthened its link with Kenda by negotiating to become the exclusive distributor of Kenda-brand car and light truck tires in North America.

    This agreement relieves American Kenda Rubber Industrial Co. Ltd. of the task of having to build a dealer network and gives Cooper another brand to offer its growing dealer network.

    Mr. Dattilo declined to comment on the sales potential for the Kenda brand but said, “We know the quality of that product.”

    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
    Icahn-owned Auto Plus files for Chapter 11 protection
    2
    Goodyear to trim jobs amid 'uncertain' economic outlook
    3
    Gills Point S acquires Hogan Tires of Maine
    4
    Bridgestone Americas creates corporate philanthropy post
    5
    Truck sector leads U.S. tire market; consumer down
    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