Two heads are better than one, as the cliché goes. Both Goodyear and Cooper Tire and Rubber Company seem to think the same and have finalized the merger between both companies. To reach a wider market, the now-combined companies will be able to offer more options across the value spectrum, making it easier for consumers to choose Goodyear- and Cooper-branded tires.
The merger gives Goodyear the majority of the shares of Cooper, but both brands will continue to be available in the market. Following the acquisition, both brands are expecting to strengthen Goodyear’s position in the tire industry. For reference, Goodyear is one of the go-to brands in the Philippines, and this is backed by the brand’s leading position in the United State. In China, there are already 2,500 Goodyear branded retail stores, and it’s through these channels that Cooper can get even broader distribution.
But the most important point of the merger is that Goodyear-Cooper now has a foothold in a wider spectrum of the market, from Goodyear’s passenger cars and SUV market to Cooper’s specialization in SUV and light truck tires. The company can now offer a broader selection of tires, whether from traditional and emerging original equipment manufacturers, autonomous driving system developers, new and established fleet operators, and other mobility platforms.
So what is the significance of this move from both companies to our local market? As we mentioned, Goodyear is very much a recognized and trusted brand in the country. With Cooper being added into the mix, customers can have peace of mind that the brand will offer tires at-par quality to Goodyear. And if Goodyear-Cooper meets their expected goals of increasing revenue while cutting costs, then perhaps more affordable tires may well be on their way to us, too. We can only wait and see, but if they play their cards right, this is very possible, especially with the automotive manufacturers looking for the best parts (tires included) at the most affordable cost for their vehicles to come out of the factory with.