Goodyear’s deal to buy Cooper Tire could boost its tech and sustainability edge

Final 12 months was a landmark one for electrical automobiles (EVs). In keeping with knowledge from the Heart for Automotive Analysis, EVs have been one of the best performing section of 2020. Whereas general car gross sales dropped about 17%, EVs fell solely 4.8% in a difficult 12 months that additionally noticed low fuel and oil costs, components that usually damage EV gross sales.

Now, extra automakers are poised to carry electrified fashions to the market, they usually’re investing closely within the know-how, particularly for the sunshine car market. Common Motors Co. has pledged that each one of its gentle automobiles can have electrical powertrains by 2035. Ford Motor Co. goals to do the identical in Europe by 2030.

As such, Goodyear is set to be a frontrunner within the manufacturing of tires for electrical automobiles, and it has centered product improvement to fine-tune areas equivalent to noise discount (notably via using foams in tires), rolling resistance and managing the elevated weight of electrical automobiles.

These efforts already are paying off, in response to Kramer, who mentioned that roughly half of the brand new unique gear (OE) fitments Goodyear not too long ago secured are for electrical automobiles.

Throughout a fourth-quarter earnings name Feb. 9, Kramer famous that Goodyear is heading into 2021 with momentum on the OE fitment facet. Goodyear’s OE fitments, he mentioned, have been up 6% within the fourth quarter, outperforming the trade general.

“Whereas I am happy with our current efficiency,” Kramer mentioned within the earnings name, “I am much more excited in regards to the features we count on in our OE enterprise in 2021 and past.

“OEMs are recognizing the dedication we have made to growing tires that can assist them rework their portfolios to extra energy-efficient and eco-friendly automobiles, whereas delivering efficiency capabilities shoppers demand.”

Goodyear not too long ago earned coveted OE fitments on high-profile electrical automobiles equivalent to GM’s electrical Hummer and Lordstown Motors’ Edurance pickup, in addition to Volkswagen Group’s ID.3. Alternatives like these ought to solely improve as automakers step up their e-mobility sport, committing extra sources to the event of EVs.

Information launched late final 12 months by the Heart for Automotive Analysis signifies that by 2025, EVs will account for 18% of whole car gross sales. By 2030, they need to have roughly 28% of the market share.

This pattern towards electrification reinforces the necessity for a mixed Goodyear-Cooper Tire firm to aggressively pursue new applied sciences and develop merchandise for electrical, autonomous and shared automobiles, officers mentioned.

“Scale and breadth are additionally key to profitable in new mobility,” Kramer mentioned within the earnings name. “The change is pushed by electrification of automobiles; shared mobility and the commercialization of autonomous automobiles are leading to unprecedented disruption within the legacy auto trade and compelled important R&D funding.”

These investments are taking root in additional complicated and dependable superior drive-assistance programs for shoppers and extra superior autonomous know-how inside the transportation sector.

Goodyear is able to sort out these challenges too, Kramer mentioned, pointing to his firm’s analysis and improvement efforts specializing in linked and autonomous automobiles.