Hankook intensifies OE business with Volkswagen Tire maker will supply 440,000 tires annually for the new VW Golf
Neu-Isenburg, Feb. 9, 2006. Hankook Tire has reached an agreement with Volkswagen to annually supply 440,000 tires as Original Equipment (OE) for the car manufacturer’s new Golf V model. Additionally, the international tire maker will supply 100,000 tires per year for the Volkswagen Bora. With this cooperation, Hankook’s overseas OE-business in 2006 is estimated at 150 million dollars.
This extensive supply of tires for Europe’s biggest car manufacturer is expected to have a boosting effect on the expansion of Hankook Tire’s market share in Europe. From now on a large portion of the new Golf V model sold in Western Europe will be equipped with Hankook tires.
Hankook Tire, one of the world leaders in the segment of Ultra-High-Performance tires (UHP), expects this latest deal to serve as the foothold for further cooperation with the entire Volkswagen Group.
The products to be supplied to Volkswagen are the Ventus Prime K105 (205/55R 16) UHP tire, and Optimo K406 (195/65R 15), a passenger car tire designed especially for the European market. The Ventus Prime is characterized by superior traction and excellent handling and can be driven at speeds of up to 240km/h. This tire is also being supplied as original equipment to Ford’s Mondeo model, the automaker’s main export model to Europe.
Hankook Tire is the first Korean tire supplier for the Golf. The company has been supplying original equipment tires for the Volkswagen Polo from 2003 on and has since equipped other products from the Volkswagen Group, such as the Audi A3, the Seat Ibiza and the Seat Altea. Aside from Volkswagen, Hankook Tire is also a supplier to prominent overseas automakers such as Ford, GM, Volvo, Daihatsu and Mitsubishi.
Said Hankook Tire CEO Cho Choong-Hwan: “The fact that we are supplying the main size for the best-selling model in Europe implies that we have crossed the threshold into the European market, which is known for its stringent requirements on technology and quality. On top of a stable demand base, we can look forward to increasing supply to the original equipment and replacement markets in Europe.”.
Established in 1938, the Volkswagen Group is Europe’s largest automobile manufacturer with 42 plants in Europe, Asia and Africa. Its automobiles are exported to some 150 countries. Among the roughly 15 million vehicles sold in Western Europe last year, approximately 2.8 million were made by the Volkswagen Group. That places the automaker in first place in terms of market share.