Skip to main content
Sister Publication Links
  • Rubber & Plastics News
Subscribe
  • My Account
  • LogIn
  • News
  • Technology Focus
    • Features
    • Technical Papers
    • Analysis: Rubber mixing plants of the future
      Analysis: US probes dumping by ESBR suppliers
      Opinion: Tire labels stuck in a rut
      Analysis: NR pricing takes one step forward, two steps back
    • White paper: Role of tire innerliners in improving 'in-use rolling resistance'
      White paper: Why tire air retention matters now more than ever
      Nippon Soda: Use of 1,2-polybutadiene in CSM rubber applications
      Elastomers for Sustainability Top 10
  • Events
    • ERJ Events
    • ERJ Livestreams & Webinars
    • Industry Events
    • Journey to Automation Awards 2020
      Sustainability: Top 10 E4S projects table
  • Maps & Reports
  • People
  • Directory
  • Digital Edition
  • Brainiac
MENU
Breadcrumb
  1. Home
  2. News
April 17, 2018 12:00 AM

Bridgestone, Goodyear to start tire-distribution JV in North America

Shahrzad Pourriahi
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    TireHub will be based in Atlanta and managed by an independent management team led by CEO Peter Gibbons, a veteran business and supply chain executive.

    The announcement was made 16 April after the close of the business in a news release distributed by both tire makers.

    TireHub will combine Goodyear's company-owned wholesale distribution network with Bridgestone's Tire Wholesale Warehouse (TWW) subsidiary, the venture partners said.

    The transaction is subject to customary approvals and is expected to close mid-year.

    The total estimated fair value of the joint venture is expected to be approximately $600 million (€485 million), according to a Goodyear 8K filing with the Securities and Exchange Commission.

    The parties estimated start-up costs will be approximately $40 million and will be shared equally. These costs are related primarily to information technology infrastructure, initial staffing requirements, and other administrative costs, Goodyear said.

    The creation of TireHub comes four months after Michelin North America Inc. (MNA) and Sumitomo Corp. of Americas (SCOA) agreed to combine Michelin's wholesale distribution activities with TBC Corp.'s wholesale assets into a 50-50 joint venture, to be called National Tire Wholesale (NTW).

    The new distribution company will complement both companies' networks of existing third-party distributors and provide a fully integrated distribution, warehousing, sales and delivery solution following completion of the transaction, the parties said.

    The partners stressed that TireHub will help provide them with the resources to help their customers manage growing complexity in the tire business, driven by SKU proliferation and rapidly growing demand for larger rim diameter premium tires.

    "It's critical for U.S. tire dealers and retailers to be able to get the right tires on time to meet the needs and expectations of their customers," said TJ Higgins, president, integrated consumer tire group, U.S. and Canada, Bridgestone Americas.

    "TireHub will help position dealers to win in today's dynamic and increasingly complex environment by giving them much needed access to a deeper and broader range of passenger and light truck tires from Bridgestone," he said.

    At launch, TireHub will have the scale to reach the vast majority of retail locations in the US daily, the partners said.

    "With the ability to deliver the full portfolio of Goodyear products and a dedicated focus on driving logistics and customer service excellence, TireHub creates a winning proposition for us, our customers, Goodyear's company-owned retail outlets and consumers, whose expectations and shopping patterns continue to evolve," Goodyear Americas President Steve McClellan said.

    Both Bridgestone and Goodyear said they expect TireHub will provide enhanced fill rates and turnaround times to ensure dealers can access products they need quickly.

    The partners said they expect TireHub will deliver a "best-in-class" customer experience through a single sales force and new online ordering portal that integrates easily with dealers' point-of-sale systems.

    The venture partners put the existing sales volume of their respective wholesale businesses at 10 million units annually. In addition, Goodyear said it intends to “reposition certain existing third-party sales volume to TireHub beginning during the second quarter of 2018.”

    Goodyear said it expects the deal to generate an incremental $80 million to $100 million in annual segment operating income in 2019 and 2020, vs. 2018.

    TireHub also will help Goodyear and Bridgestone customers manage growing complexity in the tire business, driven by SKU proliferation. The new distributor will provide on-demand access to the full array of products from both companies, which is critical for their customers, who typically have limited inventory space at their locations.

    Mr. Gibbons joins the new venture from CP Kelco, a division of the J.M. Huber Corp., a manufacturer of biopolymers, where he was a director for the past six-plus years. He also held executive vice president positions at Mattel Inc. and Starbucks.

    RECOMMENDED FOR YOU
    Top Glove eyes new expansions with HK listing
    Top Glove eyes new expansions with HK listing
    Trelleborg divests UK offshore oil & gas unit
    Trelleborg divests UK offshore oil & gas unit
    Forbo targeting growth-markets, innovation after Covid-hit year
    Forbo targeting growth-markets, innovation after Covid-hit year
    Free Newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Get the latest news impacting the European rubber industry, from breaking news to razor-sharp analysis, in print and online.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter
    • Youtube

    Logo
    Contact Us

    @ 2019 European Rubber Journal. 
    European Rubber Journal is published bi-monthly by NUERJ Ltd.

    Registered Office: Castle House, 89 High Street,
    Berkhamsted, Hertfordshire HP4 2DF, United Kingdom. 

    Tel. + 44 (0)203 196 0141 

    Registered No. 13104613 England

    Email: [email protected]

    Website www.european-rubber-journal.com

    Customer service 

    Tel. + 44 (0)203 196 0141 

     

    Resources
    • About us
    • Contact Us
    • Advertise with Us
    • Media Kit
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
    • Technology Focus
      • Features
      • Technical Papers
    • Events
      • ERJ Events
      • ERJ Livestreams & Webinars
      • Industry Events
    • Maps & Reports
    • People
    • Directory
    • Digital Edition
    • Brainiac