Strategic Changes announced in Falken Tire Corporation (FTC) North American Business

Due to the termination of the previously held agreement between Sumitomo Rubber Industries Ltd. (SRI) and Goodyear as reported on June 4, 2015, Sumitomo Rubber Industries Ltd.  North America business unit will rearrange its business entity as a strategic initiative by the company for increasing its penetration in the country.

As of January 1, 2016, Falken Tire Corp. subsidiary of Sumitomo Rubber Industries Ltd. will change its name to Sumitomo Rubber North America Inc. (SRNA) as a first initiative towards the strategic rearrangement.

Besides that, SRI’s Goodyear Dunlop Tire North America Ltd. will change its name to Sumitomo Rubber USA L.L.C. by the end of March, 2016.

As per TechSci Research, with this strategic initiative Sumitomo Rubber North America would be able to increase its visibility in both OEM & Replacement market.

Further as per the new corporate structure, Sumitomo Rubber North America would operate three separate sales divisions:

1.    The first division, Dunlop Motorcycle Tire, which is situated in Tonawanda, New York, would be responsible for the sales of Dunlop motorcycle tyres to the Original Equipment Manufacturer (OEM) and for the Replacement markets as well.

2.    The second division, Falken Tire Corporation, which is located in Rancho Cucamonga, California, would be focussing on the sale of Falken tyres majorly in Replacement market especially for the Light Vehicles. 

3.    The third division of Sumitomo Rubber North America, which is located in Detroit, Michigan would concentrate on the Original Equipment (OE) sales. The company would be responsible for the sale of Dunlop branded tyres in Light Vehicles for Japanese OEMs, and the sale of Falken branded tyres in the North America for OE customers.