In what started in February this year, Cooper Tires has been officially acquired by Goodyear Tires. The aim was to create a strong tyre market leader in the US. The combined portfolio of both the renowned tyre makers will ensure that the US market customer is not left wanting. It remains to be seen if this agreement is also extended to the other parts of the world. In the Indian market, we have Goodyear tyres being offered as OEM and replacement in many cars. In the US though, with this merger, customers will get new tyres for cars, trucks as well as busses. “We are excited to officially bring Goodyear and Cooper together and unite our shared focus on customers, innovation and high-quality products and solutions. This combination strengthens Goodyear’s ability to serve more consumers globally and provides increased scale to support greater investments in new mobility and fleet solutions,” said Richard J. Kramer, Goodyear chairman, chief executive officer and president.
This acquisition has doubled Goodyear’s share in the Chinese tyre market. It also claims to increase the relationships with local automakers and at the same time, creates a broader distribution for Cooper replacement tyres via Goodyear’s 2,500 strong retail stores. Cooper is particularly strong in the SUV as well as light truck segments. There are also opportunities for Cooper to expand its facilities to achieve flexibility as well as increase capital efficiency. More revenue opportunities will also be created with this acquisition is being said.
In the Indian market, this may not have much of a relevance. However, Goodyear might introduce Cooper tyres here at a later stage. Those looking to import Cooper tyres will also find it much easier to do so via Goodyear’s network. Who knows, some OEM might even want to invest in Cooper tyres for their products.
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