Yokohama Rubber Ltd.
Yokohama Rubber Ltd., Tokyo, Japan, and Continental AG, Hanover, Germany, signed a letter of intent in order to do worldwide tire business activities more closely in the future. As an essential element of this letter of intent, a 50/50 joint venture is to be set up in Japan by the end of the year. The joint venture will focus on Japanese automakers in bundling the joint activities of the two companies for the worldwide benefit of these original equipment customers. In the letter of intent, the two companies also are committed on stronger cooperation in tire production, above all in the NAFTA area, and on technological collaboration. Yokohama will help support Continental in expansion of the latter company's replacement tire business in the Japanese market. The two companies will look for synergies, including in the area of purchasing.