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Goodyear, T&WA Sign Mutual Venture Agreement

29 May 1998

Goodyear, T&WA Sign Mutual Venture Agreement

    AKRON, Ohio, May 28 -- The Goodyear Tire & Rubber Company and
T&WA Inc., of Louisville, Ky., have signed a mutual venture agreement to
supply mounted and balanced tire and wheel assemblies to the world's major
automobile manufacturers, the two companies announced today.
    Terms of the agreement were not disclosed.
    The agreement between North America's largest tire manufacturer and T&WA
Inc., a minority-owned business, will result in systems integration that soon
will be required in all global markets according to Eugene R. Culler,
executive vice president of Goodyear, and head of the company's North American
Tire business.
    "Global suppliers are expected to service the industry as a tier one
assembly supplier with increasing responsibilities," Culler said.  "The push
from our original equipment customers is toward fewer suppliers with more and
more focus on component assembly."
    Tommie Burns Jr., chairman of T&WA Inc., said the relationship with
Goodyear is a strong alliance between two companies dedicated to providing
quality service at affordable cost.
    "We may be a fairly young company compared to Goodyear's 100 year old
tradition," Burns said of T&WA Inc., "but that also makes for a perfect
partnership.  We know what our customers want...high quality and low
cost...and that's exactly what we give them."
    T&WA Inc., was started in 1995 collecting tire and wheel components from
several suppliers, assembling and delivering them in sequential order.
Mercedes Benz Vance, Ala., plant was the first to contract with Burns and his
partner Gary Dodd, a former Toyota executive.  Toyota followed with a contract
for its Princeton, Ind., pickup plant, and then Ford Motor Co., added its Avon
Lake, Ohio, minivan plant.
    "The potential for a service like this is unlimited," said Culler.  "With
T&WA Inc., auto manufacturers may deal with one supplier instead of three or
four tire makers and several other wheel and wheel parts suppliers.  In
addition, the outsourcing process frees up valuable manufacturing space in the
auto plants."
    Burns said the mutual venture also fits well with the automakers' stated
desires to offer more business opportunities to minority firms.  The agreement
is such that Burns and Dodd will continue to hold a majority stake in the
company, T&WA Inc.  T&WA Inc. will continue to be operated as an independent
company.
    "This is an outstanding opportunity for both Goodyear and T&WA," said
Culler.  "They (T&WA) have demonstrated very quickly that they understand the
customers needs and the processes related to the business.  We expect a very
successful long-term relationship."