Retail

Yokohama and Kumho jump in bed together

Posted on December 2, 2013

Yokohama Rubber Co. Ltd.  and Kumho Tire Co. Inc. signed a memorandum of understanding on Nov.  29 to start discussions of technology exchanges and a capital alliance premised on cross-shareholdings.

Yokohama says the two companies aim to increase their competitiveness and enhance their future growth potential in the global tire market by sharing R&D resources and making more effective use of them through joint research and development on tires and related technologies.

The two companies also plan to enter into a capital alliance based on cross-shareholdings. Yokohama Rubber and Kumho will start discussions on the details of the alliance (including methods for obtaining each other's shares, the size of shareholdings, and the timing of acquisition) with the aim of signing a legally binding contract as early as possible, according to Yokohama.

Kumho Tire, established in 1960, is headquartered in Gwangju, South Korea. The company is a core member of the Kumho Asiana Group, which also includes Asiana Airlines. Kumho Tire recorded consolidated net sales of 4,070.6 billion ($3.8 billion) won in fiscal 2012. The company has eight tire plants in South Korea, China, and Vietnam and employs about 11,000 people.

Yokohama Rubber, founded in 1917, is engaged in the manufacture and sale of tires and a variety of products in its multiple business operations. In fiscal 2012 (ended Dec. 31, 2012), the company recorded consolidated net sales of 559.7 billion yen ($7 billion), with tires accounting for 444.6 billion yen (nearly $5.6 billion) of the total. Yokohama operates 12 tire plants (not including those currently under construction) in seven countries around the world and employs about 20,000 people globally.

Related Topics: capital alliance, Kumho Tire Co., Yokohama Rubber Co. Ltd.

Comments ( 0 )
More Stories
Bobby Hendry from 31 Inc. was from one of 80-plus vendors at the Tire Factory trade show. Here he talks to Mike Fleming, equipment supply manager for the dealer group, and Marc Thompson from Point S Everett in Everett, Wash.
News

Point S Rebranding Exceeds Expectations in the U.S., and Points to More Growth

Tire Factory Inc. members have rebranded the vast majority of their 206 stores to the Point S banner at a breakneck pace. And leaders of the Oregon-based cooperative are unveiling new programs with two big hopes: the momentum of current members continues, and more independent tire dealers join their network.

ATV has added 6 stores to its network of American Tire Depot stores in California.
News

ATV Opens 6 American Tire Depot Stores

ATV Inc. has acquired six stores in the greater Los Angeles metro area. The purchase expands ATV's network of American Tire Depot stores to 98 outlets, all in California.

News

MATDA Joins TIA's Social Media Platform

The Mid-America Tire Dealers Association (MATDA) has joined the social media content platform developed by the Tire Industry Association (TIA) and the Automotive Marketing Foundation (AMF).

News

Toyo’s Net Tire Sales Drop 6.7% in 2016

Toyo Tire & Rubber Co. Ltd. reported a net loss of 12.3 billion yen on net sales of 381.6 billion yen for its fiscal year ended Dec. 31, 2016. That compares to net income of 1.6 billion yen on net sales of 407.8 billion yen for fiscal 2015.

News

Feb. 15 Webinar: Take 1 Hour to Learn Why Customers Buy

An upcoming free webinar, "Commitments: Understanding Customer Buying Decisions," will help improve your retail selling experience. It will be held today, Wednesday, Feb. 15, 2017, starting at 2 p.m. ET (11 a.m. PT), and last an hour.

News

Michelin’s Net Income Rises 43% in 2016

Margins on consumer tires helped boost Groupe Michelin’s net income 43% in 2016. Michelin posted net income of 1.7 billion euros on net sales of 20.9 billion euros for its fiscal year ended Dec. 31, 2016. That compares to income of 1.2 billion euros on sales of nearly 21.2 billion euros for fiscal 2015.

Michelin is donating $10,000 to help families in Mexico on behalf of its BFGoodrich Tire brand.
News

After Big Wins in Baja, BFGoodrich Brand Gives Back

The BFGoodrich tire brand developed its off-road identity four decades ago in the Baja peninsula in Mexico. Now Michelin North America Inc. is recognizing the region's importance with a $10,000 donation.

News

Kumho Suffers Fiscal Loss Followed by a 2-Day Strike

Kumho Tire Co. Ltd. posted a net loss of 58.4 billion won on net sales of more than 2.9 trillion won for its fiscal year ended Dec. 31, 2016. That compares to a net loss of 69.3 billion won on sales of 3 trillion won for fiscal 2015.

Sears is taking its DieHard branding a step farther, and is opening a DieHard Auto Center in San Antonio, Texas.
News

Sears To Open Its First DieHard Auto Center

Exactly eight months after Sears Holdings Corp. announced it was lending its popular DieHard brand name to a new line of tires, the company is revealing a new store concept: the DieHard Auto Center Driven by Sears. The first store opens Feb. 17.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!