Automotive Hose Agreement Between Goodyear And Phoenix

Phoenix Automotive (Hamburg) and Goodyear Engineered Products (Akron) are manufacturers of automotive hoses. The two companies have signed an agreement, whereby each can utilise the other’s production facilities in order to satisfy the demands of their increasingly-global auto manufacturer customer base. Both companies are strong in their respective geographic regions and the new move will aid them in becoming global suppliers of uniform, high quality products for the auto industry worldwide.

The facilities involved are Phoenix’s six factories in mainland Europe and GEP’s six plants in North America and Mexico. It is likely that the agreement will be expanded in the future to cover Asia and South America. Speaking about the agreement, Hermann Kampling, MD of Phoenix, said that it reflects automotive industry demands as it moves from regional to global car models.

For GEP, General Manager Alex Dumm, said that the agreement offers significant advantages and cost efficiencies for both companies by optimising manufacturing and technical support. Turnover for both companies in 1999 was US$ 860 million (Phoenix) and US$ 1.2 billion (GEP).