Retail

Kumho plans to finish sale by end of March

Order Reprints

Kumho Industrial Co., parent company of Kumho Tire U.S.A. Inc., hopes to complete the sale of its tire division by the end of March, says Kumho Tire U.S.A. President Kyu Cho.

Kumho is negotiating with the Military Mutual Aid Association, which oversees South Korea's military pension fund.

Talks have broken down between Kumho and an investment group led by JP Morgan Chase and the Carlyle Group, with whom the Korean tiremaker had been negotiating during 2001, according to Cho.

Kumho is asking $1.5 billion for 80% of the company.

Cho told mtdealer.com earlier today that Kumho is looking for "a money infusion from the outside."

The sale of Kumho's tire unit will have no impact on United States-based management or the company's current dealer relations, say Kumho officials.

"And there will be no change in our marketing strategy," says Dave Hudrlik, Kumho Tire U.S.A.'s vice president of sales.

"The sale will hopefully provide us with more products" due to a capital infusion, he adds.

Related Articles

Goodyear Plans to Reopen 'Majority' of Plants by End of May

Cooper to pay out dividend at end of March

'We are on track to break even by the end of 2002:' Continental's Wellen strengthens OE ties on his way to profitability

You must login or register in order to post a comment.