Across the Atlantic they are called tires, while over here we use a “Y” and say tyres. This tag provides the latest tyre business news emanating from the United States of America (USA), whichever way you spell it.
Three Arisun and Westlake brand tyres, which are manufactured by Zhongce Rubber Group Co., Ltd. (ZC Rubber) in China, recently achieved Smartway fuel efficiency accreditation from the US Environmental Protection Agency (EPA). The Westlake AT566 long haul tyre, Arisun AT570 long haul tyre, Arisun AD778 regional driver tyre all qualified of the low rolling resistance standard.
While the Uniroyal tyre brand is owned by Continental in Europe, in North America the name belongs to the Michelin fold and has been present in the consumer market there for more than 50 years. The existing North American market Uniroyal portfolio of passenger car, SUV and light commercial vehicle tyres is now being joined for the first time by a heavy commercial vehicle tyre range; six new truck tyres have been launched in the US market.
Bridgestone may have had the 800 outlet Pep Boys retail network snapped from it hands by Icahn Enterprises, yet the tyre maker is holding onto its growth plans in the USA. Speaking with Japanese financial publication Nikkei, Bridgestone chief executive officer Masaaki Tsuya shared on plans for 20 per cent growth in the tyre maker’s US retail network by 2020.
Hankook Tire America Corp. (Hankook) is recalling certain Ventus S1 Noble 2 tyres I n the US because they may develop cracks in the tyre sidewall, resulting in a loss of air. The products subject to the recall are the 245/45R18 96W, manufactured 20 May 2013 to 14 February 2015; and size 245/40R19 94W and 275/35R19 96W tyres manufactured 22 May 2013 to 14 February 2015 supplied for 2015 Hyundai Genesis vehicles as well as being sold as replacement tyres.
A planned expansion of a Bridgestone passenger car tyre plant in the USA will help the company respond to increasing global demand for higher rim size tyres, the company says. The Wilson manufacturing facility in North Carolina will be expanded as part of a five-year, US$164 million investment to meet market demands and to invest in newer and more efficient technology. Work on the multi-phase expansion of the 42-year-old facility is expected to commence in early 2016.
The merger agreement signed between Bridgestone Retail Operations and The Pep Boys – Manny, Moe & Jack in October 2015 has been terminated, and in its place the US automotive service and retail chain has signed a definitive agreement under which Icahn Enterprises will acquire Pep Boys for US$18.50 per share in cash. Simultaneous with the demise of the Bridgestone agreement, Icahn Enterprises, on behalf of Pep Boys, paid Bridgestone a $39.5 million termination fee
In a statement issued on 29 December 2015, the heads of five major North American tyre manufacturers called for the US government to not only meet the commitments it made in the recent Paris climate change talks, but to “use its economic might to drive strengthened commitments over time and follow through from other countries around the globe.”
During the closing days of last year, Bridgestone Americas announced that the Bridgestone Retail Operations subsidiary would not counter bid the latest bid from Icahn Enterprises to acquire The Pep Boys – Manny, Moe & Jack. This meant a Happy New Year for Carl Icahn, who now looks set to add the brand and the 800+ Pep Boys outlets to his portfolio.
The bidding war for The Pep Boys – Manny, Moe & Jack has entered a new round, with Icahn Enterprises L.P. offering an extra dollar per share to acquire the US automotive aftermarket retail and service network – a total of around US$56 million more than the offer it made earlier this month. This higher figure has found favour with the Pep Boys Board of Directors – after consultation with legal and financial advisors it determined on 20 December that Icahn’s proposal to acquire Pep Boys for US$16.50 per share in cash constitutes a ‘Superior Proposal’.
Yokohama Rubber’s Salem factory in the USA recently reached two milestones – its 25th anniversary and the production of 80 million tyres. Tetsuro (Tex) Murakami, president of Yokohama Tire Manufacturing Virginia, LLC, described these as “two very significant achievements for Yokohama, particularly in the US.
Step off the plane and into a car at Qingdao airport and it won’t be long before you see a Sentury Tire billboard. While this particular Chinese tyre manufacturer isn’t a global player, it is rapidly internationalising and is selling millions of tyres in Europe (many of which end up in the UK). The firm is expanding very quickly and recent high-profile appointments and off-shore factory investment announcements suggest the firm is well and truly on a growth path. Towards the end of 2015, Tyres & Accessories met with export sales manager Hellen Yang and Davanti vice-general manager Wilson Zhang for a tour of the firm’s large and very modern factory near Qingdao airport.
Citing “weak market conditions that are not expected to improve during 2016,” Titan International has given word of layoffs that will take place at its Bryan plant in the US state of Ohio. The layoffs will begin on 8 February 2016 and affect at least 130 employees. The tyre maker anticipates these layoffs will be temporary and last a minimum of six months, however some may become permanent should market conditions fail improve.
Falken Tire Corporation has announced a realignment of its business units that accommodates changes brought about by the dissolution of the global alliance between parent company Sumitomo Rubber Industries and Goodyear Tire & Rubber. The realignment will take place in stages and begins on 1 January with the subsidiary’s renaming as Sumitomo Rubber North America, Inc.; Richard Smallwood, who is currently CEO and president of Falken Tire Corporation, will hold these positions in the retitled business.
After determining the US$15.50 per share merger agreement proposed by Icahn Enterprises superior to Bridgestone’s $15.00 a share deal, The Pep Boys – Manny, Moe & Jack gave the tyre maker until 5:00pm (EST) last Friday to return with new and more attractive merger terms. Bridgestone Retail Operations (BSRO) did just that, and the two parties have now amended the terms of the merger agreement originally signed on 26 October.
The Board of Directors at US automotive aftermarket retailer The Pep Boys – Manny, Moe & Jack has declared the US$15.50 per share merger agreement received by Icahn Enterprises superior to the $835 million Bridgestone Retail Operations was prepared to pay, not least because it isn’t subject to due diligence or financing conditions, and it contains a ‘hell or high water’ anti-trust covenant. Pep Boys have now lobbed the ball back into Bridgestone’s court, and the tyre maker has two days to come back with a better offer.
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