Jim McCullough, vice president and general manager of TBC's Carroll Tire unit, will become senior vice president and national sales manager of NTW, TBC said.
"This partnership with SCOA will better position us to serve our retail customers and ensure that consumers have access to our products when and where they need them," Mr. Clark said.
"With this partnership, we can offer an expanded geographic footprint, a broader breadth and depth of product choices and better availability and increased delivery frequency. It will also allow us to provide better and faster service to our direct customers through an enhanced delivery service program."
Sam Kato, senior vice president and general manager of SCOA's Auto and Aerospace Group, added: "This joint venture further supports our mobility strategy in this new, dynamic era in the automotive landscape.
"In addition to the competitive edge this joint venture provides in the distribution arena, we believe Michelin's successful experiences in mobility services will add value to TBC. SCOA will continue to pursue investments, which support our goal of integrated mobility solutions, such as this."
The partners said the venture will offer a number of strategic benefits, including:
- Becoming a more competitive player in the growing North American tire wholesale and auto services sector, enabling growth in critical North American markets;
- Combining distribution, reach and speed for satisfying the needs of online consumers more effectively;
- Providing a foundation for coast-to-coast coverage of car and light truck service providers, addressing trends of growth in fleet maintenance and increasing complexity of service requirements and tire sizes; and
- Increasing the companies' market share and operational scale, positioning the venture for faster growth.
Michelin said it is contributing a cash payment of $630 million in addition to the TCi Wholesale assets to the venture to match the $1.52 billion in "enterprise value" of TBC's assets.
TBC's retail and proprietary brands businesses are part of the venture but will be unaffected by the formation of the new venture, Michelin said.