Freedonia Analyst Weighs In On Goodyear Tire & Rubber's Acquisition of Cooper Tire & Rubber
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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."