At present, Cooper Tire & Rubber operates eight plants in the Americas, Asia and Europe, and production from all three regions is sold on the European market. However the company believes its value proposition can be strengthened by increasing the proportion of European-made tyres sold here.
As well as needing to sort out issues at the Cooper Chengshan plant, Cooper Tire & Rubber and Apollo Tyres now face an additional barrier to acquisition. Last Friday an arbitrator ruled that Cooper cannot sell its Findlay and Texarkana plants in the US until Apollo secures new collective bargaining agreements with the United Steelworkers union and the 2,500 or so unionised workers at the two factories. This agreement is separate from the existing contract the union has with Cooper Tire.
The United Kingdom is Cooper Tire’s strongest European market. The company holds a 7 to 7.5 per cent of the consumer market here, thanks largely to healthy 4×4 tyre sales. Market share on the other side of the English Channel and in the PCR segment is more modest, however, and Jeff Schumacher would like to see this change. Schumacher, who took on the role of Cooper Tire Europe’s managing director and vice-president at the start of this year, aims to increase combined market share for all Cooper brands to five per cent across Europe. To achieve this, the company has opened a new branch office in Russia, is increasing market penetration in France and Germany and signing on new brand ambassadors. Furthermore, in September Cooper unveiled a new range-topping passenger car tyre, the Zeon CS Sport.
Cooper Tire Europe has announced a new feature to its presence at the 2013 Rally Day event. The company’s 4×4 zone will offer visitors the chance to ride in one of DriveTech’s 4×4 machines, which swaps speed for sheer inclines and drops, mud, water and more as the Cooper rubber is put through its paces in a demanding off-road course.
In the latest installment in the on-going Apollo/Cooper merger saga, a Chinese court has postponed a hearing on a case brought against the combination by Chinese manufacturing business Cooper Chengshan.
In addition to unveiling its new Zeon CS Sport, on Wednesday morning Cooper Tire Europe gave word that it has recruited David Coulthard as its UHP range brand ambassador. The ex-Formula One and DTM driver, who now fronts the BBC's F1 coverage, will represent the tyre maker until the end of 2016 at key events and also offer technical advice and feedback to the company's product development team, as he did for the Zeon CS Sport.
Cooper Tire Europe has launched its new range-topping line, the Zeon CS Sport. Full details will be published later, however the big news is that this successor to the Cooper 2XS has achieved an 'A' wet grip label rating for every fitment within in the range.
Resistance to the acquisition of Cooper Tire and Rubber by Apollo Tyres continues unabated, with workers at the Cooper Chengshan joint venture factory in China's Shandong province locking out their US managers in protest against the deal.
Workers say that the takeover will put their jobs at risk and, according to Yue Chunxue, director of the labour union at the plant, foreign managers could face the risk of "bodily injuries". He added: "unless the deal is cancelled, we will continue to boycott it until the very end. A three-month strike ended on August 17th but the union is continuing to boycott work on Cooper-branded products.
Cooper is backing a septuagenarian crew on the final leg of its around-the-world expedition. The ‘Heaven Can Wait I’m Busy’ endured a series of setbacks delaying the arrival of the Cooper Discoverer A/T3-shod Jimnys into Vancouver from Hong Kong, but the two vehicles arrived safely on Canadian soil on July 22. It was then a further five days before the cars, which have traversed some of the world’s harshest terrains, were cleared by customs.
Shares in Cooper Tire & Rubber fell 3.3 per cent to US$31.50 on Monday 26 August, putting the stock down 6.1 per cent in total this month. According to the Wall Street Journal, this marks a two-month low and comes off the back of investor fears that the decision India’s central banks to review large deals by Indian companies may affect the transaction. Indeed one report emanating from India suggests that Apollo Tyres’ big for Cooper Tire is about to get reviewed in particular.
The 11th edition of the China International Tyre Expo (CITExpo) looks set to be the largest prior to the show’s opening. The three halls of the Shanghai Everbright Convention and Exhibition Center are full ready for the show on 4-6 September. The organiser, Reliable International Exhibition Services, says that more than 350 quality exhibitors will occupy 24,000sqm exhibition space, including major tyre industry brands like Cooper, Double Coin, Stamford, Techking and Triangle. Tyres & Accessories/Tyrepress.com will also be in attendance in its role as one of the show’s partners, with a full report from the show due in the October edition of T&A magazine.
Cooper Tire & Rubber’s acquisition by Apollo Tyres is expected to close within a matter of months, and the new owner may need to reckon with a unionised plant in Tupelo, Mississippi. According to US industry publication Tire Review, local media have reported the presence of the United Steelworkers union in town.
Apollo Tyres does not anticipate that alterations to India’s overseas investment regulations will influence its plans to acquire Cooper Tire & Rubber. On 14 August, the Reserve Bank of India (RBI) reduced the limit for overseas direct investment; with immediate effect the limit for overseas direct investment must be no more than 100 per cent of the Indian purchasing company’s net worth. The RBI will decide upon any overseas direct investment exceeding the 100 per cent limit on a case-by-case basis.
Cooper Tire Europe is demonstrating its increasing interest in the Russian market by attending the Moscow International Motor Show with what it calls an “extensive range of high-performance, winter and 4×4” tyre products. The Moscow Motor Show runs from 26 – 29 August.
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Cooper Tire & Rubber has announced payment of its 166th consecutive quarterly dividend to shareholders. A dividend of 10.5 cents per share will be paid on common stock, payable 30 September 2013 to stockholders of record at the close of business 5 September 2013.
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