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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.

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