Jeez, I didn't think they'd take that survey seriously when I said "I love your tires, but you don't make a serious autocross tire".
Fort Mill, SC., October 4, 2016 — The international technology company Continental today announced the acquisition of Lakeville, IN-based Hoosier Racing Tire Corp., a manufacturer of specialty tires for racing applications.
“This acquisition showcases the consequent execution of our long-term growth strategy Vision 2025, characterized by strategic planning and systematic implementation of technological progress. The acquisition of Hoosier Racing Tire is an exciting next addition to our product portfolio and will support our growth strategy, especially in the ultra high performance segment,” said Nikolai Setzer, Executive Board Member for Continental’s tire business.
Dr. Jochen Etzel, CEO of Continental Tire the Americas, LLC (CTA) added, “Hoosier’s management team has built an impressive business. We believe Hoosier Tire is well-positioned to continue its strong growth, and we look forward to supporting that development through our complementary knowledge and extensive footprint. Hoosier’s management team will continue to run the racing tire business. We are committed to the employees, and the communities in which Hoosier operates. We look forward to the future of working together to accelerate growth.”
Hoosier was founded in 1957 and has a legacy of technical product knowledge, quality manufacturing, outstanding service and consistent performance. Hoosier supplies tires for most racing applications throughout the world, with an emphasis on high performance and quality. The company currently employs nearly 500 people.
Joyce Newton, Hoosier’s president and CEO said, “Continental and Hoosier share a similar vision for continued growth and sales excellence. Hoosier has fantastic brand recognition, a high-performing team, established customer relationships and a great lineup of products. This acquisition will provide a stronger and more sustainable organization for Hoosier moving ahead.”
Continental and Hoosier have worked together over the past several years on a variety of technical and motorsports projects. Continental is constantly looking to add talent to its team. The transaction will create significant opportunities for the employees of Hoosier and CTA.
Terms of the transaction are not being disclosed.
Jeez, I didn't think they'd take that survey seriously when I said "I love your tires, but you don't make a serious autocross tire".
Will we see a Hoosier 'street' tire? I hope so.
Hopefully this isn't a 'thanks for the brand name' acquisition where they'll dump the actual Hoosier products and just slap the name on whatever they feel like selling.
Hasn't Hoosier been making some of the racing tires for Continental over the last few years? I think Hoosier has some actual skill and production ability that is valuable. Probably more so than the name actually.
No doubt Hoosier has valuable skill, technology, and production abilities. They wouldn't be where they are without it. But keep in mind it wasn't just Continental Tire that acquired Hoosier, it was Continental Corporate, the giant global corporation.
http://www.conti-online.com/generator/www/start/com/en/index_en.html
Sometimes they lose sight of the fun stuff.
Just to tone down my posts a bit: I'm sure it'll be fine, and possibly even improve Hoosier tire. But a brand acquisition is a real thing too.
Like any other large corporate acquisition of a highly regarded niche brand, this makes me nervous. If done correctly, it will be a symbiotic relationship that offers some new shared resources, and where the niche brand is given significant autonomy to keep up their reputation without cheapening the brand. If done incorrectly, the corporation will micromanage and/or cheapen the niche brand, and essentially gut its reputation in an attempt to create short-term shareholder gains. Even if it starts out as the former, all too often the prospect of the latter is too tempting for short-sighted corporate management to ignore. So here's hoping that this is simply the beginning of more good things to come of this than bad!
Hoosier could also tap into much larger manufacturing and sourcing resources, allowing the A6 to drop to a $125 tire instead of a $225 tire.
As a friend said on FB:
Hoosiers are expensive.
Continentals are expensive.
What does this mean for the average autocrosser long term?
I don't think the Hoosier name carries all that much weight. I could be wrong, but I think people generally run Hoosiers because they're the best at what they do, not because it is a Hoosier.
I gotta figure that they're not just buying a name.
mazdeuce wrote: Will we see a Hoosier 'street' tire? I hope so.
Oh god. I would run Hoosier a daily just for the name.
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