Toyo to discontinue US automotive parts subsidiary

Hyogo, Japan – Toyo Tire Corp. is closing down its US automotive parts manufacturing subsidiary Toyo Automotive Parts (TAP), effective end of October.

Based in Franklin, Kentucky, TAP has been producing anti-vibration rubber products and automotive joint boots since 2001 and employs 207 people.

“As a result of rising material, energy and labour costs, TAP has been unable to maintain or improve its profit outlook,” said a 10 Aug statement from Toyo.

TAP's production operations are now to be consolidated at Toyo's other global locations, according to the Japanese group.

The move, it stated, would help optimise management resources and enhance the competitiveness of automotive parts business.

“There will be no disruption of supplies to our customers in North America who will continue to be served by our Toyo Tire North America OE Sales LLC subsidiary,” Toyo emphasised.

Toyo's Automotive Parts business unit reported an operating loss of Yen728 million in the first half 2023, compared to a loss of Yen1.3 billion reported last year.

Sales within the business rose 16% to Yen23 billion, according to Toyo figures.

With the streamlining of the US operations, Toyo said it expects the business unit to "climb into black" by 2025.