Toyo ends joint venture with Continental and Yokohama
The lawsuit pitting Toyo Tire Holdings of Americas Inc. against Continental Tire the Americas LLC and Yokohama Corp. of America is over.
Toyo says it has reached an agreement settling all claims relating to the case, captioned "Toyo Tire Holdings of Americas Inc. v. Continental Tire of North America, Inc., et al. (Case no. SACV 10-00052 JVS). As a result, the pending lawsuit and related arbitration has been dismissed, and the injunction entered by the District Court in California in 2010 has been dissolved.
Under the terms of the settlement agreement, Toyo has agreed to withdraw from the GTY Tire Co. "in consideration for the parties’ mutual release of all claims. GTY was a joint venture formed by the three parties in 1988. Located in Mount Vernon, Ill., the plant has the capacity to produce 7,300 truck tires a day, according to the 2011 Modern Tire Dealer Facts Issue.
In addition, pursuant to the agreement, Continental and Yokohama agreed to produce "a certain quantity of truck and bus radial tires" for Toyo at the facility, which Toyo may purchase from GTY monthly for approximately the next year.
For historical background on the lawsuit, click on "Toyo seeks relief vs. GTY joint venture partners," "New development in Toyo-GTY joint venture case" and "Court grants Toyo's application for GTY tires."