Dealers: Combined Goodyear, Cooper offers advantage

CUYAHOGA FALLS, Ohio — Tire dealers contacted recently by Tire Business reacted with optimism and excitement to news of Goodyear acquiring Cooper Tire & Rubber Co.

The new Goodyear will cast a wide net, and a streamlined portfolio using both the breadth of segment coverage and the depth of brand price points could be great for everyone, they noted.

"We're excited about the future," Carson Cornelius, chief development officer at Zurcher Tire Inc., said. "We've been loyally buying the (Cooper) Mastercraft brand for decades. We've also been dealing with Goodyear for decades."

The Monroe, Ind.-based tire wholesaler distributes from 11 sites in Indiana, Illinois, Iowa, Michigan and Missouri.

"We think Mastercraft and Cooper's other brands can be a great addition to Goodyear's strong brand catalog," Mr. Cornelius said. "We're excited to see an American company secure the future of important American brands."

Goodyear's $2.5 billion bid to buy Cooper closed June 7. The combination of the two Ohio-based companies brings together the world's No. 3 tire maker, with global sales of $13.7 billion in 2019, with Cooper, the No. 13 tire maker with $2.8 billion.

Rick Benton II, vice president of BTS Tire & Wheel distributors and Blacks Tire Service Inc. (BTS) in North Carolina, said his company has worked with both Goodyear and Cooper for a long time, and the combined company has the potential to benefit all segments of the tire industry, including retail, commercial, retreading and wholesale distribution.

"It's pretty amazing to see two American companies come together with so much history," Mr. Benton said.

"I always felt the two companies could complement each other for the future."

Whiteville, N.C.-based BTS operates more than 50 locations across North and South Carolina.

"The full product line together helps build potential growth to be able to service all segments of the market," he said.

Goodyear has not indicated its plans for the Cooper brands — including Mastercraft, Mickey Thompson and Roadmaster — beyond 2021.

Goodyear said operations of the two companies will stay unchanged at least until the end of the year.

Executives of Nebraskaland, Kansasland, Coloradoland Tire Group (NKC Tire) said they were surprised to hear about the deal and have been following it closely since it was first announced in February.

"Goodyear and Cooper are two of our primary suppliers, so we are watching very closely as the situation develops," Carson Wright, executive vice president of NKC Tire, said.

"At this time we don't have any intentions to adjust our product screen or adjust how we go to market, but that could always change as Goodyear rolls out the new integrated programs."

NKC Tire operates 46 retail, commercial and wholesale locations in its three-state footprint.

"We hope that things remain favorable for our company and that we can continue to serve both our Goodyear and Cooper customers as we always have," Mr. Wright said.

At Zurcher Tire, Mr. Cornelius said he doesn't anticipate an adverse effect to how the company orders tires.

"I could even see it increasing the Goodyear-branded units we purchase," he said.

"We'd like to see Goodyear keep the Mastercraft brand's position and products unchanged. There are new products coming out. The new products help continue an effort by the Mastercraft brand to streamline the product lines and to offer the latest technology in the brand," Mr. Cornelius said.

"This has been a move opposite to some of the other manufacturers, but this has been welcomed by our customers.

"One of the great things about dealing with Cooper was that Cooper would solicit and listen to our feedback," Mr. Cornelius added.

"Losing that would be a loss of a competitive advantage.

"People use technology, but people still buy from people. What made Cooper special was the people and their understanding of the importance of customer relationships.

"I hope that part of Cooper endures," Mr. Cornelius said.