THE TYRE INDUSTRY: WORKING AS ONE

Nokian Tyres To Hire 150 Workers At Its Dayton Plant

The Global Data Service Organisation (GDSO) for tyres and automotive components is only a few months old in the tyre industry but is doing an exceptional job at elevating it. The international non-profit organisation standardises data related to tyres and defines solutions to access and exchange data. Moreover, it establishes worldwide agreement on a web service to facilitate data access by stakeholders. Tyre Trends caught up with Riccardo Giovannotti, GDSO Secretary General, who explained how GDSO functions, the significance of sharing knowledge within the tyre industry and about getting more tyre manufacturers on board with the organisation.

Can you tell us a bit about GDSO?
GDSO was established in January 2022, which makes us pretty young. It was founded by five founding members that are tyre manufacturers – Bridgestone, Continental, Goodyear, Michelin and Pirelli. GDSO wants to be technology-agnostic; therefore, we aren’t paying attention to just one specific technology. We want to stick to standardised technology in line with the first word of our pay-off: ‘Standardise. Share. Simplify.’

When we talk about data, that could be static data like the tyre brand, tyre dimension, date of production etc. or also some possible performance data like the rolling resistance value, the uniformity data etc.

Today, the bigger challenge for the tyre industry is to retrieve tyre data. Visual inspection, data inspection etc. are causing a lot of waste of time and missed opportunities, leading to a lack of profitability – not just for the tyre manufacturers but all the stakeholders involved in the tyre value chain.

When you say data, what kind of data do you mean?
I mean the data around the tyre.

The tyre industry is one that is not very keen on sharing data, especially when it comes to raw materials. So what is the purpose of coming together to retrieve data?
We know that everyone in the industry is competing fiercely with one another. However, in the past five to six years, the tyre industry has realised that the competition will change. We are entering a digital era of opportunities and our vehicles are becoming more connected. Hence, we really need to step up together and elevate the tyre sector to the digital age. After that, tyre manufacturers will definitely compete with one another. But before we get there, we have to join forces so that the scale-up of the entire industry may be quicker. Thus, it is a win-win situation.

Plus, we need to share our knowledge with one another. Sharing knowledge is not an issue if we want to solve the industry’s problems together. In fact, sharing knowledge presents opportunities. So it’s all about the mindset – to work together towards opportunities. And I am sure that tyre manufacturers will start competing once the data is available in an electronic format on the services to be provided, which would be very interesting. Therefore, we would like to unlock this potential through the sharing of knowledge and information, which should be further based on simplification.

Speaking of knowledge sharing, are you open to having more GDSO members to get their insights?
While we already have a solution for retrieving data, we are open to engaging new members. Five members are not enough, and we need to bring the tyre industry to another level. In order to achieve this, we need new members to join us who can share their input from a technical standpoint. Hence, our organisation is already shaped with a clear governance that wants to be transparent. We want to have a shared platform from a collaboration standpoint. For this, we need the cooperation of different technical aspects made by different tyre manufacturers. The point is to come together for one common goal.

Can you tell us more about your solution?
The solution that we have invented is something that is not disruptive. It is based on the common commitment towards standardisation: the Tyre Information Service (TIS). Before launching the solution, we were looking for some benchmarks. While we had a clear understanding of ‘what’ the problem was, we wanted the ‘why’ to exist. Thus, before addressing the ‘how’, we decided to go for a benchmarking. It was possible that some other industry (not necessarily the vehicle or tyre industry, but beyond that) may have tackled the same challenge. And the answer was that no one had done it. This was because of the old mindset that competitors cannot share. So we engaged with stakeholders and went through ISO, GS1 etc. and brought about the solution. Our target is to work with entities and not with a single owner of the vehicle or tyre. The intention is to create an ecosystem.

The fact is that the tyre industry was still perceived as an old industry. Something like a beauty product – just a black product placed on the road. However, at the same time, we decided to consider this product as an asset, because from an engineering standpoint, it is the first sensor for the vehicle. Therefore, we can start understanding the friction condition, the road condition, the vehicle behaviour and so on. Earlier, every tyre manufacturer would start building services and solutions starting from this. Hence, we have an engineering angle but also new digital services. In truth, the tyre industry is also working on prognostic services. Ultimately, the concept behind unlocking the potential is to enable services and solutions that may make mobility safer and more sustainable.

Do you have data analysts on your team?
No, we don’t. GDSO acts as the highway controller – we show and provide the ticket to the correct entrance and the correct exit. However, the data and data ownership remain with the tyre manufacturer. We just provide an interface and a platform where the data provided by the tyre companies can be seen. This highway should just be an additional asset to be used and not burden the different stakeholders.

How are you making sure that the data is secure?
Cybersecurity does not really apply to GDSO. However, we want our members to have high standards of cybersecurity. We want the members and tyre manufacturers to sit together and set the standard that they must adopt for cybersecurity to apply to the TIS.

Being a non-profit organisation, what is the source of income for GDSO?
Our only source of income is the membership fees. Also, in any case, every start-up will be sustainable from an economic standpoint as well. And this is what we keep in mind as members, that is, to be sustainable as an organisation. Thus, we are already working on creating new services that we may sell (but not to make profits). The organisation itself is robust enough to be long-lasting.

Is it easy to get more tyre manufacturers on board with GDSO, especially Asian manufacturers who are establishing their base in Europe?
We are already in the spotlight made by the big tyre manufacturers. Besides, different tyre associations were involved in this journey from the very beginning. I am in talks with Japan Automobile Tyre Manufacturers Association (JATMA) about the latest updates in the tyre industry and how they can now apply in order to be members of GDSO as well. Similarly, I am doing the same with other European and American tyre manufacturers. Besides, I also have plans on getting in touch with the Chinese tyre manufacturers. Hence, the momentum is quite good.

Nevertheless, I think the biggest challenge is going to be telling some of the tyre mould companies – which do not have a very global perspective and not a very long business plan – that digitalisation is not an option; it is a must and just a matter of time. I understand that these mould companies tend to concentrate more on daily, manufacturing-oriented activities. They may not have a clear signal of digitalisation as their customers are not demanding it yet. But they can start by having a clear understanding of what will be the long-term view – even if not by implementing digitalisation immediately – and can plan a strategy for the years going forward.

Yokohama Rubber Recognised As Supplier Engagement Leader In CDP's 2024 Assessment

Yokohama Rubber Recognised As Supplier Engagement Leader In CDP's 2024 Assessment

Yokohama Rubber Co., Ltd. has been recognised as a Supplier Engagement Leader in CDP's 2024 assessment, achieving the highest rating for its efforts in collaborating with suppliers to address climate change.

CDP, a global environmental nonprofit, evaluates companies based on governance, targets, Scope 3 emissions, risk management and supplier engagement. This marks Yokohama Rubber’s third consecutive year and sixth overall time receiving top honours in CDP’s climate change evaluation.

Committed to achieving net-zero CO₂ emissions from its operations by 2050, the company has actively worked to reduce its environmental impact across the supply chain. Since 2013, it has disclosed Scope 3 emissions and implemented the Yokohama Green Procurement Guidelines to encourage sustainable material sourcing. Through annual CSR briefings, Yokohama Rubber engages suppliers in its carbon neutrality initiatives, fostering cooperation to lower emissions throughout the supply chain.

Hankook Tire Publishes 2024-25 ESG Report

Hankook Tire Publishes 2024-25 ESG Report

Hankook Tire has published its 16th annual ESG Report for 2024/25, detailing its sustainability achievements and future strategies aligned with its global ESG vision focused on Eco Value Chain, Sustainable Products and Responsible Engagement. The report adopts a comprehensive framework that evaluates social, environmental and financial impacts in line with the European Sustainability Reporting Standards (ESRS), emphasising enhanced biodiversity disclosures compliant with international guidelines like the TNFD.

Key focus areas include eight major management priorities such as climate action, resource efficiency, human rights and innovation. Hankook Tire is also strengthening its response to global ESG regulations, including the EU Deforestation Regulation (EUDR), through a dedicated committee overseeing natural rubber supply chain management.

To support sustainable growth, the company has an ESG Committee under its Board of Directors, operational since 2021. It is also driving circular economy initiatives, such as commercialising Korea’s first tyre using chemically recycled PET fibre and mass-producing EV tyres with 77 percent ISCC PLUS-certified sustainable materials.

Beyond environmental efforts, Hankook Tire engages in social initiatives, including biodiversity conservation, employee development and community partnerships. Its long-term commitment to sustainability dates back to 2009, with milestones like the 2018 sustainable rubber policy and the 2023 board performance evaluations to enhance governance transparency.

ZC Rubber Indonesia Launches First ATV Tyre

ZC Rubber Indonesia Launches First ATV Tyre

ZC Rubber has successfully commenced production of its first all-terrain vehicle (ATV) tyre at its Indonesian subsidiary, PT. Matahari Tire Indonesia (MTI), marking a strategic expansion into specialised mobility segments.

MTI’s state-of-the-art factory, covering 500,000 square metres, is strategically located in a region rich in natural rubber resources. Equipped with advanced digital technology and staffed by a highly skilled workforce, the facility is poised to meet the growing demand for high-quality tyres in both local and international markets, including the United States.

ZC Rubber’s investment in Indonesia provides access to vital raw materials and strengthens its global supply chain. The facility is poised to serve both local needs and support ZC Rubber’s international market expansion, reinforcing the company’s commitment to innovation, quality, and sustainable development.

Nexen Tire Posts Record Q2 Revenue Of $577 Million On Strong European, US Demand

Nexen Tire Posts Record Q2 Revenue Of $577 Million On Strong European, US Demand

South Korean tyre maker achieves second consecutive quarterly revenue record despite raw material pressures

South Korean tyre manufacturer NEXEN TIRE reported record quarterly revenue for the second consecutive period on Thursday, posting consolidated sales of 804.7 billion won in the second quarter as increased European production capacity and recovering US demand offset global automotive sector uncertainties.

The company’s operating profit reached 42.6 billion won in the three months to June, remaining stable from the previous quarter despite ongoing pressure from elevated raw material costs that began in late 2024.

The strong performance was primarily attributed to enhanced production following the completion of Phase 2 expansion at NEXEN TIRE’s Czech Republic facility, combined with targeted regional sales strategies that secured key supply volumes across both original equipment and replacement market segments.

US sales strengthened further in the second quarter, building momentum from the first-quarter recovery after experiencing a temporary decline in the latter half of 2024. Expanded retail distribution partnerships supported the improvement, the company said.

In the Asia-Pacific region, Australia and Japan delivered record sales volumes, driven by continued investment in distribution network development.

Ocean freight costs provided some margin relief, though the company continued to face headwinds from raw material price increases that began in late 2024. However, NEXEN TIRE expects improved profitability in the second half as key input costs have been trending downward since early 2025.

During the first six months of 2025, the tyre maker began supplying original equipment tyres for 11 vehicle models, including the Hyundai NEXO, Kia EV4 and TASMAN, whilst deepening partnerships with global automakers, including premium brands.

The company said it would implement gradual price adjustments in the US market in response to recent tariff policy changes, focusing on expanding high-margin products and strategically reallocating global supply volumes to mitigate profitability risks.

“Despite persistent macroeconomic challenges, NEXEN TIRE achieved record-breaking sales for two consecutive quarters by maintaining balanced growth across both OE and RE segments,” said Chief Executive John Bosco (Hyeon Suk) Kim. “We will continue to reinforce our global competitiveness through strategic partnerships and region-specific initiatives.”

NEXEN TIRE has been building brand awareness through localised marketing efforts across North America, Europe, the Middle East, and the Asia-Pacific regions whilst expanding its retail presence through strategic distributor partnerships.