TOKYO—Yokohama Rubber Co. Ltd. and Continental A.G. have agreed to terminate their Yokohama Continental Tire Co. Ltd. joint venture company, effective at the end of March.
The companies formed YCTC in 2002 to address Japanese and South Korean car makers' requirement of global procurement, Yokohama said, but as both firms' global production networks grew, the joint venture's primary purpose was achieved.
As a result, both companies will look after their own business interests separately.
Separately, Yokohama said it would leverage its proprietary global production network to expand its overseas original equpment business further, which is one of the key goals of Phase IV of the tire maker's Grand Design 100 medium-term management plan.
In particular, YRC said it has targeted a fourfold increase in OE fitments in markets outside of Japan from 2014 to 2020, sourcing tires from plants in China, Thailand, the Philippines and Russia while also supplying Japanese auto makers with original equipment tires for export models.
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