Leading tire manufacturers, Continental AG and Yokohama Rubber Co., Ltd. have announced that from the end of March 2016, they will be terminating their joint venture partnership in the company Yokohama Continental Tire Co., Ltd. (YCC).This announcement brings to an end a partnership that was established back in 2002 in order to help automotive manufacturers from Japan and Korea to procure components on a global basis. In the past 14 years, both companies have considerably expanded their procurement and production networks. In view of the fact that the primary purpose of the joint venture has been achieved, the two companies agreed to terminate the joint venture and focus on expanding on an inpidual basis.
Yokohama Rubber Co. was established back in 1917 in Japan and is a major player in the global tire market. In addition to making tires for SUVs, construction machinery, passenger cars, buses and trucks, the company also makes a wide range of rubber products like automotive hoses, marine hoses and conveyor belts. On a global basis, the company has a workforce of 22,000 people and a manufacturing footprint of 14 factories spread across eight countries. Yokohama’s total sales for the 2015 fiscal year (Jan-December) amounted to 629.9 billion yen.
Yokohama is currently in Phase IV (FY2015–2017) of its medium-term management plan, Grand Design 100 (GD100). The aim of the company in this phase is to strengthen Yokohama’s presence in the OE sector in the period from 2014 to 2020 so as to achieve a fourfold increase in the number of Yokohama tires used in new cars in overseas markets. In addition to supplying Japanese automotive manufacturers with OF tires for their export models, the company is also increasing shipment of tires intended for OE use from its factories in Russia, Philippines, China and Thailand. After the termination of the partnership with Continental, Yokohama will use its global manufacturing base to further expand its OE business in overseas markets.
Continental AG is a German manufacturer of premium tires which also specializes in the manufacture of other automotive components and intelligent technologies. In 2015, Continental had preliminary sales of approximately 39.2 billion Euros across its five pisions, Chassis & Safety, Interior, Powertrain, Tires, and ContiTech. Continental has over 208,000 employees in 53 countries.
Manju Mathew, an MBA in marketing, completed publisher training courses from the Oxford Brookes University and New York University. She started with marketing and PR roles before moving on to her current position as a full time writer. Currently living in Dubai, her life as an expat has sharpened her observation skills and flair for writing. She enjoys writing about luxury cars like Ferrari, Lamborghini, etc even if she can only dream of owning them.
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