Yokohama spotlights growing UHP tire portfolio

Yokohama Tire Corp. continues to grow its tire portfolio in 2022, most recently launching the ultra-high-performance Advan AO55, a DOT-approved "max-grip" shallow-grooved tire designed for use in open-tire category racing classes.

Stan Chandgie, Yokohama executive vice president of sales and support, said the company plans for two more ultra-high-performance product launches this summer and will also unveil an all-season van tire this fall.

How would you describe business thus far in 2022?

A lot like the past two years, there have been a lot of uncertainties (inflation, interest rates, etc.) and rising costs (fuel, labor, supply chain, etc.). Nevertheless, we have been able to grow the business and outpace the rest of the market. We'll continue to actively monitor the market conditions and work closely with our partners to ensure mutual success.

How has Yokohama managed supply chain issues in the last year? When do you expect the situation to ease?

For starters, we have been able to generate more domestic production for both our consumer and commercial divisions. We also opened up a new distribution center in Wilmer, Texas, last year, which allows us to not only hold more inventory but reduces transit times both from the plants and ultimately to our customers when the product is needed most.

Finally, we continue to try to find creative solutions with our customers to respond to these challenges. As far as "easing" is concerned, one only needs to look at some of the port congestion overseas today to recognize the log jam that we could see on our shores very soon. Ultimately, we are preparing as if these issues will be with us for the foreseeable future.

What kind of trends are you seeing in the marketplace?

Well, it's hard to call the acquisitions that we see in the industry a trend anymore as it just seems to be a part of everyday life. Regardless, we expect to see more consolidation.

On the product side, I think we're seeing more stock being placed on performance and value. This is true for both consumer and commercial and extends not only to our direct customers, but to end-users as well. We think this puts us in a strong position today given our offering, competitiveness and real-world results.

Do you expect to roll out any additional products in 2022?

We're launching three summer ultra-high-performance (UHP) tires this year, including our global flagship Advan Sport V107, our next-generation Neova, the Advan Neova AD09, and purpose-built DOT-R tire, the Advan A055.

We're also expecting an all-season van tire later in the fall.

On the commercial side, we've already brought our 720R 19.5-inch N-rated drive tire to market and are planning an UWB waste tire later this year.

What are some ways your company addresses sustainability?

Yokohama has a long history of sustainable initiatives from our Forever Forest project, increased use of renewable fuels and recycled materials and ongoing march towards carbon neutrality.

At this year's Pikes Peak International Hill Climb, we'll be using Advan A052 tires with biomass-derived butadiene rubber on one of our entries in the Exhibition Class. This replaces petroleum-derived butadiene rubber and has a high recyclable material content.

How do you explain recent price increases across the industry?

We often see supply and demand drive a lot of the pricing decisions in the industry, and although that continues to be a factor today, there are a lot of additional factors that are likely contributing to some of the pricing actions of late.

One of the most notable impacts that everyone is facing today is the rising cost of labor and salaries. This trend is likely here to stay, which could suggest the same for the recent increases we are seeing across the industry. We are hopeful things will start to stabilize; however, I think the past two years have taught us that it is extremely difficult to predict what is coming next.