Continental and Yokohama to end their 14 year old Joint Venture.
Japan: The news
came from the Continental Tires based in Shanghai, China where the company
officials announced the termination of 14-year old joint venture with Yokohama Rubber
Company.
The Yokohama Continental Tire Co. which was
founded in 2002 in order to meet the global original equipment requirements,
specifically for Japanese and Korean car manufacturers by both the tire
companies at an international level.
Tansu Isik, head of the OE business for
passenger car tires in the APAC region at Continental, China says “Our joint
venture has enabled us to establish a solid foundation for our original
equipment business with Japanese and Korean vehicle manufacturers during the
last 14 years.”
As per Mr. Isik, the decision was taken in
2015 and is expected to be implemented from April 1, 2016, where Continental
has decided to sell its Continental Premium Tires in Japan and Korea on their
own and support their OE (Original Equipment) customers.
According to a recent report published by TechSci Research, “Japan Tyre Market Forecast and Opportunities, 2020”, the
country’s automotive industry is one of the most prominent and the largest
industries in the world. Due to the exceptional performance of the tire
companies in the domestic market of the country, Japanese tire industry is likely
to grow at a significant pace in coming years. However, the recent winding up
of joint venture by the two companies, is going to affect OEM tire market of
the country.
As per TechSci Research, the recent step taken by the
two tire giants signify that the sole purpose of the joint venture formation,
was achieved successfully. Moreover, now the companies are looking forward to
develop their own OEM market not only in Japanese market, but in the entire
APAC region. This would lead to the individual growth of both the companies in
the APAC region.