MOUNT VERNON, Ill. (May 18, 2011) — The GTY Tire Co. truck tire joint venture operation, housed in Continental Tire the Americas' Mount Vernon plant, has adjusted the joint venture ownership after an agreement to dissolve the partnership with Toyo Tire Holdings of Americas Inc.
The GTY venture, formed in 1988 by Toyo, Conti and Yokohama Corp. of America, now involves only Conti and Yokohama under terms of an agreement the three partners reached in mid-January to settle Toyo's lawsuit against Continental and Yokohama.
According to Conti CEO Matthias Schoenberg, Toyo's 16-percent ownership in the venture has been divided between Conti, which now has a 59-percent stake, and Yokohama, which now has a 41-percent share.
Toyo filed suit Jan. 11, 2010, against Continental and Yokohama after the two GTY partners shut off Toyo's supply of truck tires from the factory and terminated Toyo's status as a joint venture partner. Conti and Yokohama claimed Toyo Tire's parent company, Toyo Tire & Rubber Co. Ltd., was involved in a technology exchange with Bridgestone Corp., a major competitor, which they considered grounds for terminating Toyo's participation in the GTY venture.