Yokohama reported a decline in the sales and business profits for its tyre segment for the first quarter, ending March 2020.

The company’s tyre business’ sales declined 12.71% to 87.410 billion yen in Q12020.  It reported a net loss of 503 million yen in Q12020.

The company said the downturn in business profit reflected a decline in unit sales volume, an increase in production costs associated with reduced production volume, and inventory-adjustment costs occasioned by a tyre recall in North America.

Both domestic and international markets saw a fall in sales. “That decline reflected production adjustments necessitated by a decline in Japanese demand associated with the novel coronavirus (COVID-19) outbreak and by suspended operation at vehicle plants in overseas markets,” said Yokohama.

Sales revenue also declined in replacement tyres. Sales of winter tyres in Japan were weak on account of warmer-than-usual winter temperatures at the outset of the year, and Japanese business in replacement tyres also suffered from the adverse effect of the COVID-19 outbreak on consumer spending. Business in replacement tyres was generally sluggish in overseas markets, too.
ATG, a part of Yokohama looking into agri, industrial and OTR tyres, also had a fall in sales and profits due low demand.

ATG’s sales stood at 15.54 billion yen in Q12020,  a fall of 17%, from 18.86 billion yen in Q12019. Profit fell by 22% to 1.78 billion yen in Q12020.

The massive business disruption caused by COVID-19 will necessitate revisions in the full-year fiscal projections that Yokohama issued in February 2020. However, the full extent of that disruption is impossible to determine at this time, and the company will therefore withhold for the time being the release of revised business projections and of proposed dividends. Yokohama will release its revised business projections and proposals for dividends as soon as management secures a firm grasp of the fiscal outlook.

Several measures are under way at Yokohama to maintain a sound financial position in the face of the COVID-19 challenge. Those measures include fortifying short-term liquidity through optimal fund raising, paring cash expenditures by deferring capital spending and trimming costs, and reducing compensation for directors, officers, associate officers, and managers.

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The Yokohama Rubber Co., Ltd. has confirmed that its flagship ADVAN brand tyres powered the JR2 Class victor at 2026 WRC FORUM8 Rally Japan, the seventh round of the FIA World Rally Championship. The race took place from 28 to 31 May on courses spanning Japan’s Aichi and Gifu prefectures.

The ADVAN A051T tarmac rally tyres delivered the grip, control and wear resistance essential for navigating the event’s technically demanding stages under high surface temperatures. The JR2 Class is designated for national and regional rally vehicles with engine displacements above 1600 cc and up to 2500 cc. The winning car was a TOYOTA 86 fielded by K-ONE RACING TEAM, driven by Yuta Yamamoto and Shizuka Takehara.

Their well-coordinated, precision driving, combined with the ADVAN A051T tyres’ performance, allowed them to clock the fastest time on every stage except SS10, where a Notional Time was applied. The pair finished over 17 minutes ahead of the second-place car. Yamamoto has now claimed first place in the JR2 Class at Rally Japan for five consecutive years, with ADVAN tyres contributing each time.

Beyond Rally Japan, Yamamoto also competes in the Japanese Rally Championship, where he has secured the JN-3 class series title for three straight years, again supported by ADVAN rally tyres. Rally Japan is the country’s round of the WRC, which ranks alongside Formula 1 and the FIA World Endurance Championship as a premier global motorsport series. The competition is run entirely on tarmac roads, and this year’s WRC calendar features 14 rounds across different nations worldwide.

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Tyres Europe has responded to the European Commission’s recent policy package on the EU Deforestation Regulation (EUDR), offering qualified support for measures that reduce red tape. Industry representatives have pointed to proposed exemptions for retreaded and test tyres as a positive step, arguing these products do not present the same supply chain traceability risks as standard new tyres. The move is seen as a way to prevent unnecessary administrative costs for businesses.

A significant point of clarity within the Commission’s documents involves the dual legal status of tyre makers. Under the new framework, manufacturers are considered operators when importing natural rubber but become first downstream operators when selling finished goods. Tyres Europe has endorsed this distinction, stating it prevents the needless circulation of due diligence statement numbers after the raw material has already been cleared at the border. The association believes the same rationale should apply to imported finished tyres, which have already satisfied verification requirements upon entry.

Nevertheless, serious practical hurdles remain, particularly concerning the EUDR’s digital infrastructure. The tyre sector routinely mixes domestically produced and imported tyres within the same warehouses for extended periods, forcing companies to repeatedly consolidate large volumes of due diligence references for customer shipments. Although the Commission has acknowledged the necessity of grouping tools, the current design of the Information System may undermine these simplified procedures. Industry leaders warn that without technically sound solutions, system resilience could be compromised.

Tyres Europe has formally requested that the EUDR’s existing implementation deadline stay unchanged. Instead of delaying the rules, the group urges policymakers to resolve unresolved operational issues through narrowly tailored fixes. The ultimate goal is to prevent duplicate transmission obligations wherever prior due diligence can be clearly demonstrated, ensuring that supply chains remain functional without sacrificing regulatory oversight.

Adam McCarthy, Secretary General, Tyres Europe, said, “The tyre industry supports the objectives of the EUDR and is ready to implement it. After years of preparation, companies now need implementation certainty. The priority now should be to ensure that the remaining operational issues are addressed through targeted refinements and further implementation guidance, rather than through any reopening of the Regulation itself.”

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The Yokohama Rubber Co., Ltd. has been named a ‘Supplier Engagement Leader’, the top ranking in the 2025 Supplier Engagement Assessment by CDP, a global environmental nonprofit focused on a sustainable economy. This marks the second consecutive year the company has received the highest rating.

The CDP assessment examines how businesses effectively collaborate with suppliers on climate change issues, based on five criteria from its climate questionnaire: governance and strategy, emissions targets, Scope 3 emissions, risk management and supplier cooperation. Yokohama Rubber aims to achieve net zero CO₂ emissions from its own operations by 2050 and has disclosed Scope 3 emissions since 2013.

To address supply chain climate impact, the company created the Yokohama Green Procurement Guidelines with suppliers to promote eco-friendly raw materials. It also holds annual CSR briefings for suppliers on carbon neutrality. Under its ‘Caring for the Future’ sustainability slogan, Yokohama Rubber continues to generate shared value by tackling social issues through business activities.

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HF Group’s Freudenburg site in Germany has once again been awarded the EcoVadis Gold Medal, a distinction granted only to the top five percent of companies assessed by EcoVadis in the 12 months prior to the medal issue date.

The recognition reflects the quality of the company’s sustainability management system and demonstrates a firm commitment to promoting transparency throughout the value chain, acknowledging its continued dedication to responsible business practices and continuous improvement.

Simultaneously, the group is now preparing for a group-wide EcoVadis assessment, aiming to achieve its first consolidated group result by the close of 2026. This initiative represents another important milestone in strengthening HF Group’s sustainability journey on a global level, reinforcing its long-term environmental and social governance objectives across all operations.

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