MTD Mid-Year Q&A: Yokohama Stays Agile in Tough Market

Yokohama Tire Corp. (YTC) is staying flexible and responsive in the face of a tough market, Stan Chandgie, the company's executive vice president of sales, tells MTD. (Changie also is chief operating officer of Yokohama Corporation of North America.)

MTD: Tell us about YTC's performance during the first half of 2026. What have been some of the company's challenges and achievements?

Chandgie: We’ve managed a solid first half result, despite a difficult market. Demand has been softer than expected and cost pressures are still there across the industry. This is true for both tariff-related expenses that continue to hit us directly, as well as the overall higher costs of goods that are impacting consumers as a whole. For our part, we’ve stayed focused on disciplined growth. We’ve made good progress through smart pricing, a strong product mix and close support of our customers. We’re especially encouraged by the continued momentum in our premium and light truck segments, where our key products are resonating well with consumers. At the same time, our teams have stayed flexible and responsive, which puts us in a good position heading into the second half of the year.

MTD: What's your take on the state of the U.S. replacement PLT and TBR tire markets? Do you foresee any relief during the second half of 2026?

Chandgie: The U.S. replacement market remains under some pressure, particularly on the consumer side. As mentioned, demand and subsequent shipments for the industry are down, which is requiring some adjustments and a rebalancing of inventory levels across the supply chain. The TBR segment has been a bit more stable, though it’s still influenced by broader economic conditions. Looking ahead, we expect gradual improvement in the second half rather than a sharp rebound, with continued normalization over time.

MTD: YTC closed its PLT tire plant in Salem, Va. Will production transfer elsewhere, and does this signal a broader network shift?

Chandgie: The decision to close the Salem plant was a strategic move to better align our manufacturing footprint with long-term market needs. Production will be supported through Yokohama’s broader global manufacturing network, which gives us the flexibility to respond to customer demand more efficiently. This is part of our ongoing effort to optimize operations and stay competitive across North America.

MTD: How is the new PLT plant in Saltillo, Mexico, progressing? What advantages will it bring?

Chandgie: The Saltillo plant is progressing well and remains on track as we prepare for production in 2027. It’s an important investment for our North American business and will provide a modern, efficient manufacturing platform. Its location also gives us better proximity to key markets, improving agility and responsiveness. For our dealer and distributor partners, this means better product availability, faster time to market and strong alignment with current vehicle and consumer trends.

MTD: What impact have tariffs and rising raw material costs had on YTC’s cost structure?

Chandgie: Like everyone in the industry, we’ve been navigating a dynamic cost environment driven by tariffs and fluctuating raw material prices. We’ve taken a balanced approach, combining targeted pricing actions with a continued focus on operational efficiency. Our goal has been to manage these pressures responsibly while staying competitive and supporting our customers.

MTD: Why is maintaining a regular cadence of new product launches important?

Chandgie: It really comes down to meeting the needs of an ever-evolving market, shifting consumer demands and the overall competitiveness of our industry. Vehicle technology, consumer expectations,and growth in segments like CUVs and SUVs are constantly changing and our product strategy reflects that. Regular innovation helps keep our brand relevant and gives our customers new opportunities to engage consumers and drive value at the point of sale.

MTD: How does the current brand trade-down trend impact Yokohama's positioning?

Chandgie: This is a dynamic industry and while it’s true that there are some challenges out there, I think there are actually more opportunities for Yokohama in this environment. We’re well-positioned take advantage of those opportunities given our strong customer relationships and balanced portfolio, which serves the totality of the market, and a wide range of customer needs. Our focus continues to be on providing value to our dealer partners and end-users in all segments.

MTD: What can we expect from YTC during the rest of 2026 and into 2027?

Chandgie: Looking ahead, our focus is on building a resilient, forward-looking business. We’ll continue investing in innovation, strengthening our manufacturing network and supporting customers with consistent execution in the marketplace. While conditions may remain fluid, we’re confident in our direction and our ability to adapt as we move through the rest of 2026 and into 2027.