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The Smithers Report Editor: Janine Young
ISSN 2165-4379
A News Digest of Activities in the Tire Industry Do not copy, fax or email
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April 6, 2020 - Vol. 33, No. 15a

FINANCE
Michelin executives take pay cut amid health and economic crisis
As a demonstration of solidarity with its affected employees, Michelin has announced its managing
partners, executive committee, chairman and independent members of the supervisory board are reducing
their pay.
Florent Menegaux and Yves Chapot, managing partners of Michelin, have agreed to reduce their
remuneration by around 25% during April and May 2020. In addition, the members of the group’s executive
committee have voluntarily agreed to reduce their pay by around 10% during the same period. The
reductions will be continued as long as group employees are in partial activity due to the COVID-19 health
crisis, the company said.
Menegaux and Chapot have also expressed their willingness to give up part of their 2019 variable
compensation paid in 2020, once submitted to the vote of the shareholders at the annual general meeting
to be held June 23, 2020.
The chairman of the Michelin supervisory board, Michel Rollier, and its independent members are donating
25% of their attendance fees received in 2020 to foundations in their respective countries, which are part of
the fight against COVID-19.
(Michelin – Clermont-Ferrand, France)

WHAT'S NEW IN TIRES

Cooper Tire continues temporary plant closures in Americas
Cooper Tire & Rubber announced April 3 that its tire manufacturing plants in the US and Mexico will remain
closed for at least another two weeks to protect the health and safety of employees and in response to
market demand that has been impacted by the coronavirus. The company will continue to monitor the
situation and adjust timing as necessary.
The temporary plant closures first announced March 21 include facilities in Findlay, Ohio; Clarksdale and
Tupelo, Mississippi; Texarkana, Arkansas and El Salto, Mexico.
Cooper plants in Europe continue to be temporarily closed as well. Its plants in China reopened several
weeks ago and have continued to ramp up production and remain in operation.
The company continues to monitor supply chain and product inventory levels, and believes it has sufficient
supply of product. Cooper’s distribution centers in the US are in operation.
As the coronavirus has continued to spread across the globe, Cooper has put measures in place to protect
employees and others, including social distancing, staggered schedules, additional cleaning and
disinfecting of facilities, restricted visitor access and other necessary steps.
(Cooper Tire and Rubber - Findlay, OH)
The Smithers Report - April 06, 2020 Page 2 of 3

WHAT'S NEW IN TIRES

Goodyear to keep manufacturing plants idled in Americas and Europe
In addition to keeping plants in the Americas idled, Goodyear will keep all of its tire and retread plants
throughout Europe, the Middle East and Africa closed until further notice. The company continues to
monitor inventory levels to support essential community services during the COVID-19 pandemic.
Goodyear originally said it would close its EMEA facilities until April 3, including plants in France, Germany,
Luxembourg, Netherlands, Poland and Slovenia. Goodyear's warehouses, and mounting and distribution
centers remain open.
Goodyear also is adjusting work schedules at its R&D centers and sales offices to reflect market needs.
Some of its employees are working remotely from home.
The tire maker continues to closely evaluate its regional production plans as well as inventory levels and
supply of raw materials.
(Staff and wire reports)

Yokohama temporarily halts production at Virginia tire plant

Due to the continuing impact of the COVID-19 pandemic, Yokohama Corporation of North America (YCNA)
is temporarily suspending production at its plant in Salem, Virginia. The controlled shutdown went into
effect on April 5 and is expected to last for two weeks.
The location produces passenger and light truck tires and is committed to the health and safety of plant
employees, as well as the community, it said in a statement. The company has preventative measures in
place to help stem the spread of COVID-19 at all company facilities.
Yokohama’s supply position remains strong with no forecasted disruptions in its ability to serve customers,
it said.
To ensure the health and safety of all personnel upon their return, the YTMV facility will undergo
sterilization and decontamination measures while production is idled.
Yokohama Tire Corporation (YTC) and Yokohama Tire Manufacturing Virginia (YTMV) are part of
Yokohama Corporation of North America (YCNA), a wholly-owned subsidiary of Tokyo, Japan-based
Yokohama Rubber.
(Yokohama Tire – Santa Ana, CA)

New super regional drive tire introduced by Toyo Tires

Toyo Tire USA is now offering the Toyo NanoEnergy M671 super regional drive tire, which is designed for
superior traction and fuel efficiency, and wear life. The SmartWay verified commercial tire has improved
tread compounds that have been developed with nanotechnology.
The M671 has a design that maintains the tread profile of the tire while reducing strain at the bead area and
belt edge for greater stability and longevity under heavy loads. It also features an optimized wide tread
pattern with 3D sipes that provide even contact pressure, increased traction, and reduces irregular wear for
longer tire life.
The combination of a high elongation top belt and stone ejectors help protect the casing from cuts and
damage providing excellent retreadability. Maximum fuel efficiency is achieved through the uniformity of the
cap and base compound, which increases wear resistance, Toyo said.
Dave Johnston, director of sales for commercial tires at Toyo Tire USA, said: “The Toyo NanoEnergy M671
super regional drive tire signals a new segment specific product for the evolving freight market. The
NanoEnergy line encompasses several fuel saving components while maintaining the durability required in
higher scrub super-regional fleets. This increases the fleet’s return on their investment and maximizes the
life of the tire.”
The super-regional drive tire is available in sizes 295/75R22.5 G/14, 11R22.5 G/14, and 11R22.5 H/16.
(Toyo Tires - Cypress, CA)
The Smithers Report - April 06, 2020 Page 3 of 3

VEHICLE INDUSTRY NEWS

EPA releases revised fuel economy and vehicle emissions standards
The US Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) and the
US Environmental Protection Agency (EPA) released on March 31 the final Safer Affordable Fuel-Efficient
(SAFE) Vehicles Rule setting corporate average fuel economy (CAFE) and CO2 emissions standards for
model years 2021-2026 passenger cars and light trucks.
The rule reflects the department’s focus on making newer, safer, cleaner vehicles more accessible for
Americans who are, on average, driving 12-year-old cars.
US Secretary of Transportation Elaine Chao, said: “Today, President Trump is keeping his promise to
autoworkers made three years ago that he would reinvigorate American auto manufacturing by updating
costly, increasingly unachievable fuel economy and vehicle CO2 emissions standards, and that is what the
Safer Affordable Fuel-Efficient Vehicles Rule accomplishes.”
The final rule will increase stringency of CAFE and CO2 emissions standards by 1.5% each year through
model year 2026, as compared with the standards issued in 2012, which would have required about 5%
annual increases. This is a change from the proposal issued in 2018.
The majority of automakers are not meeting the 2012 standard without resorting to the use of credits,
NHTSA said.
The SAFE Vehicles Rule increases US competitiveness by reducing regulatory costs by as much as $100
billion through model year 2029, NHTSA stated. According to NHTSA/EPA projections, it will also boost
new vehicle sales through model year 2029 by up to 2.7 million vehicles.
The final rule can be found at NHTSA.gov/SAFE.
(National Highway Traffic Safety Administration – Washington DC)

New Honda EVs are a collaborative effort with General Motors

General Motors and Honda are jointly developing two new electric vehicles for Honda using GMs Ultium
battery platform. Manufactured at GM plants in North America, the Honda electric vehicles will combine the
development expertise of both companies. Sales are expected to begin in the 2024 model year in Honda's
US and Canadian markets.
GM and Honda have an ongoing relationship around electrification, which includes fuel cells and the Cruise
Origin, an electric, self-driving and shared vehicle, which was revealed in San Francisco earlier this year.
Honda also joined GM's battery module development efforts in 2018.
Rick Schostek, executive vice president of American Honda Motor, said: "This expanded partnership will
unlock economies of scale to accelerate our electrification roadmap and advance our industry-leading
efforts to reduce greenhouse gas emissions."
The companies are in discussions regarding the possibility of extending their partnership further, Schostek
added.
According to Doug Parks, GM executive vice president of global product development, purchasing and
supply chain, the collaboration is another step on the journey to an all-electric future and delivering a
profitable EV business through increased scale and capacity utilization.
As part of the agreement to jointly develop electric vehicles, Honda will incorporate GM's OnStar safety and
security services into the two EVs integrating them with HondaLink. Honda also plans to make GM's hands-
free advanced driver-assist technology available.
(General Motors – Detroit, MI)

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