Toyo Tire to give up Chinese TB part

Toyo Tire is secretly negotiating with some Chinese tire company located in Qingdao to sell its Chinese truck and bus tire business to the latter, according to Tireworld's latest report.

The two sides has been contacting since August, and is expected to get closure in recent days, an insider tells the journalist from Tireworld.

Toyo Tire's TB tire factory,locating in Zhucheng, Shandong Province, has stopped production for a while, and their tire dealers in China have been gather in front of Zhucheng factory to protest Toyo Tire breaking their "three guarantees" on problem tires since August either, according to Tireworld's report.

Signs of sell Zhucheng factory

Last year, when Toyo Tire (China) decided to merge Zhucheng sales office into Shanghai sales office, Hidenori Fukutomi,chairman of Toyo Tire (Zhucheng), said there is no necessary to keep the factory going on, if TB tire's gross profit is lower than 10%.

At the beginning of 2015, Toyo Tire (Shanghai) company said there was no need to hold marketing activities for TB tires anymore.

In June 2015, Toyo Tire's Chinese chairman said on internal meeting that the company stopped developing new TB dealers.

In September 2015, Toyo Tire cuts 13% of TB price in August for tire dealers and courages the latter to stock more tires, which has never been happened before.

At the same time, haulted negotiaton between the company and the dealer on "three guarantees" problems suddenly got some improved. Some of the tire dealers got problem tires' pension which has been owed by Toyo Tire for over eight months.

All the signs showed that Toyo Tire is way out of Chinese TB tire market.

Dealers' Worries 

When Toyo Tire (China) decided to merge Zhucheng sales office into Shanghai company last year, general manager has promise that TB tire sales policy won't be changed, and Shanghai company will continue excutiving "Three guarantees" after-service.

However, tire dealers have been recieved no cash from Shanghai companies since merge, which they spot paid to consumers for the problem tires.

After hearsaying that Toyo Tire wil quit from Chinese TB tire market, the dealers couldn't help worrying their money they paid and TB tires' after-service problems they stocked in hand.

Although some of them has got pension already, they still worry that goods they have stocked after Toyo's bow out.Who will carry out "three guarantees" policy in the futurr?