Rob Williams, president of Hankook Tire America Corp., says the company is focusing on supply chains, manufacturing and other areas to better serve its dealers.
MTD: Last year, you told MTD that Hankook Tire America Corp. makes up about 25% of Hankook's global tire sales. Can you bring us up to speed on Hankook Tire America Corp.'s business so far in 2025? What have some of the company's challenges and accomplishments been?
Williams: 2025 has been an exciting year for us. We started the year by launching two new products in our Dynapro line and one for our Ventus family and have since expanded our TBR line through our newly introduced Smart Brand. We continue to drive our OE partnerships both in the U.S. and globally, including a recent OE announcement with Lucid Gravity’s electric SUV. And we’re in the middle of two exciting motorsports seasons for Formula E and the FIA World Rally Championship.
Of course, like many in the industry, we are navigating some uncertainty, especially concerning potential impacts on pricing and supply chains. However, Hankook Tire America Corp. remains committed to ensuring we provide the best value for our customers – both dealers and drivers – and we are doing everything in our power to ensure strong supply lines and minimize any potential disruption. Our U.S. plant in Clarksville, Tenn., has played a major role in that.
MTD: What's your take on the state of both the consumer and TBR tire segments in the U.S.? What has demand been like? What are you hearing from your dealers?
Williams: Transparently, we’re seeing the impact of market uncertainty across all segments. Earlier in the year, customers were delaying purchases due to that uncertainty. Now we’re all taking things day by day as the economic environment evolves. That said, there are some things bolstering both the consumer and TBR segments. On the TBR side, there’s been a consistent increase in regional trucking, particularly here in the U.S., which has been driving up the replacement tire demand. On the consumer side, the uncertainty in the broader auto market may be focusing more on the longevity of current vehicles. The Hankook Gauge Index, which helps keep a pulse on drivers’ preferences and habits, found 65% of drivers think it’s likely they’ll need to replace one or more tires in 2025. The decisions they make when that time comes will likely be driven by the growing demand for versatility, performance and value that have been shaping the consumer market for years.
MTD: Hankook recently provided an update on the phased expansion of its plant in Clarksville, Tenn. When the expansion is completed, the plant will have an expected, annual production capacity of 10 million PLT tires and one million TBR tires. In what ways will this plant serve as a catalyst for Hankook's growth in the U.S.?
Williams: We are excited about the continued progress at our Tennessee plant, which aims to expand production of PC/LT and TBR products. We expect to begin mass production in the second half of 2025. The plant positions Hankook to support future growth in the U.S. market while ensuring we maintain our competitive offerings. TBR products are the most recently added to the production lineup and we are excited to begin that as early as this year. We have already been producing TBR products at our global bases and bringing that to Tennessee will strengthen supply chains and strategically position us to maximize benefits for the end customer. That goes for both PC/LT and TBR offerings.
MTD: In addition to the tires made in Tennessee, Hankook also brings in products from the U.S. market from South Korea, Indonesia, China and Hungary. Will the recent tariff actions imposed by the Trump administration change Hankook Tire America Corp.'s product sourcing and/or manufacturing footprint or strategy? If yes, why? If no, why not? Will the Tennessee plant be used to help alleviate the need to import units?
Williams: As an industry, we are all monitoring the potential impact of the evolving tariffs across all segments. Hankook has been investing in U.S. manufacturing for more than a decade, having built an $800 million facility in Clarksville, Tenn., that currently employs more than 1,000 employees and produces five million tires each year. The Tennessee plant is currently undergoing two expansions simultaneously to expand production of both its passenger car and light truck (PCLT) line and TBR line, which would support the medium truck tire replacement market. Upon completion of the expansion plan, the facility will achieve an expected annual production capacity of 10 million PCLT and one million TBR tires and become one of the largest tire plants in North America. Initiatives such as this are intended to strengthen the local supply chain and ensure minimal disruption regardless of the regulatory landscape.
MTD: When we talked a year ago, you mentioned that Hankook thought it was important to "get more boots on the ground" in terms of your salesforce in the U.S. How's that effort coming along?
Williams: When we spoke last year, we talked about how important it is for Hankook that we have a touchpoint with our regional dealers. That’s still true. And our strong leadership team is key to continuously strong sales growth. That’s even more important as the entire industry navigates the current landscape. Effectively meeting the needs of our national and regional partners is essential and our experienced sales team plays a crucial role in achieving this.
MTD: Hankook recently unveiled its fifth-generation TBR tire line-up, noting that new additions to Hankook's U.S. TBR tire range will be brought to market under the new Hankook Smart Brand. Why did Hankook see the need to introduce a new family name for its TBR products?
Williams: Hankook’s commercial tire offerings are now unified under the family name, Hankook Smart. We did this to differentiate our TBR lineup, but in a way that would help customers better understand what products they’re buying, and their intended use that’s marked by the second half of each name: Line, Flex, Work, City, Touring or Control. Regardless of the name, our Hankook Smart products are developed with the innovative design technology SmarTEC (Smart + Technology), which is characterized by the improvement of overall tire performance based on five key factors: safety, mileage, anti-chip, retreadability and traction/technology.
MTD: What are your continued plans for the Laufenn brand in the U.S.?
Williams: Hankook Tire is enhancing its global competitiveness and expanding the range of consumer choices by operating a dual-brand strategy with its premium brand, Hankook, and its global second-line brand, Laufenn.
The Hankook brand represents the company’s top-tier technological expertise and offers premium products that deliver outstanding performance. It includes the flagship tire brand, Ventus; the world’s first complete tire lineup dedicated to electric vehicles, iON; the SUV-focused tire brand, Dynapro; the comfort-oriented, Kinergy; and the winter tire range, Winter i*cept, as well as its newly introduced all-weather line, Weatherflex.
Laufenn, on the other hand, is designed for consumers seeking high-quality products at a value price. Introduced in 2014, the Laufenn family provides a well-rounded lineup that ensures optimal performance across various road conditions, while also catering to diverse driving styles and lifestyles. We continue to reinforce Laufenn’s global presence by showcasing innovative technologies at major international events such as (the) SEMA (Show) and CES.
MTD: Can you bring us up to speed on Hankook's ongoing EV tire strategy? Are you still bullish on the segment?
Williams: We are still dedicated to continuing EV-specific tire development for the North American market. We understand there will always be shifts in demand, regardless of segment. We’re seeing that now in the EV space, but expect demand to increase again as consumers and automakers balance cost versus benefit and continue familiarizing themselves with the benefits of EV-specific technology. Our iON line is the world’s first full lineup of tires developed specifically for EVs. Our current EV offering includes our summer performance tire, the iON evo; the all-season iON evo AS; and iON winter products, each with an SUV counterpart to accommodate the growing segment. We also look forward to introducing new products for the EV light truck tire segment later this year. That is part of our ongoing business strategy as we look to manufacture and supply EV light truck tires. In the end, our goal is to ensure that our full EV portfolio will address needs for SUV/CUV, LT and sedans - underscoring our commitment to meeting accelerating demand for EV tires across all segments.
MTD: What can we expect to see from Hankook Tire America Corp. during the rest of 2025?
Williams: While we can’t predict what may come down the road from an external perspective, we can say with certainty that our commitment to dealers and customers has never been greater. We will launch some exciting new products this year, each one aimed at expanding our lines for segments that are a priority for us and our customers. We are focused on strengthening our supply lines, continuing our innovative product development processes and increasing production at our Tennessee plant to strengthen support for the North American market.
