Falken: 'Sumitomo-Ohtsu deal a great thing'
"We'll have better support in production and product development," says Richard Smallwood, Falken Tire Corp.'s vice president of sales and marketing, when Sumitomo Rubber Industries Ltd. absorbs its Ohtsu Tire & Rubber Co. Ltd. subsidiary this coming summer.
"For us, it's a great thing," Smallwood told mtdealer.com. earlier today.
Ohtsu owns Falken Tire and supplies the Rancho Cucamonga, Calif.-based company with all of its tires.
Sumitomo announced last week that it will absorb Ohtsu through an equity exchange deal in mid-2003; it also plans to absorb Dunlop Japan, which it owns 100%, around the same time.
Sumitomo also has revised its year-end 2002 sales projections from eight million yen announced last August to between six and seven million yen.
The company is reportedly blaming the drop on decreases in Goodyear Tire & Rubber Co.'s stock value. (Sumitomo owns nearly 1.5% of Goodyear, while Goodyear owns 10% of Sumitomo.)