CLEVELAND, March 10, 2021 /PRNewswire/ -- Goodyear Tire & Rubber, the leading US-based manufacturer of tires and a leading supplier of other industrial rubber products, announced recently that it was acquiring Cooper Tire & Rubber, the second-largest US-based tire producer. The transaction, which is expected to be completed in the second half of 2021, will create a firm with annual revenues of over $17 billion and a global network of over 50 manufacturing plants.
According to Freedonia Group industry analyst Matt Zielenski, the transaction provides significant benefits for both firms. "For Goodyear, the company will be able to greatly its position in the large replacement tire market – both in the US and elsewhere in the world. Rising automobile prices in the US will encourage many people to extend the lifespan of their vehicles before trading them in, which in turn will support long-term demand for replacement tires. Additionally, as automobile ownership increases in such nations as China, the market for replacement tires will also rise."
Furthermore, a burgeoning Asian market for motorcycles will provide additional growth opportunities for the combined company, as both Goodyear and Cooper have extensive product lines in that market segment.
Zielenski noted that for Cooper, the deal allows that company's products to be sold through Goodyear's extensive global distribution network – such as the TireHub joint venture with Bridgestone, as well as at Goodyear's chain of Goodyear-branded service stations – thus broadening its customer reach. Additionally, Cooper will have access to Goodyear's technologies, such as run-flat tires, thus potentially boosting the performance properties of its replacement tire offerings.
For more information on the global market for tires, see the Global Tires study from Freedonia.
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SOURCE The Freedonia Group