Looking Forward Tire Company Execs Talk About the Future

“The problem with the future is that it keeps turning into the present.” - Calvin & Hobbes creator Bill Watterson

And the present has an odd way of getting in the way.

For instance, when we first planned for this story, we thought it would be neat to peer into the future and see what the tire industry – products, companies and dealers – might look like in 2030.

That was in June 2008. In October, the future became the present and our plans changed. While a 20-year trip to the future might be interesting, near-term issues such as financial recovery, changes at automakers and shifts in consumer preferences became more pressing.

As futurist author H.G. Wells once said, “The future is the shape of things to come.” And so we posed three questions to the heads of the nine major tire companies operating in North America to get their take on the shape of things today – and those to come.

Taking part in this interview were:

• Mark Emkes, chairman, president and CEO of Bridgestone Americas

• Matthias Schoenberg, CEO of Continental Tire North America

• Roy Armes, chairman, president and CEO of Cooper

• Rich Kramer, Goodyear COO and president of its North American Tire unit

• Greg Pae, president of Hankook Tire America

• Dick Wilkerson, chairman and president of Michelin North America

• Hugh Pace, chairman and CEO of Pirelli Tire North America

• Yasushi Takagi, president and CEO of Toyo Tire USA Corp.

• Takao Oishi, president and CEO of Yokohama Tire Corp.

The answers to the questions we posed we at once expected and interesting, especially the glints of detail on particular projects and programs.


1) How has the current economic situation forced you to make changes in your company today and how will it form your business approach moving forward?

Bridgestone’s Emkes: We believe that the current economic situation presents us with a unique opportunity to find ways to work smarter, leaner and become more efficient. We’ve formed an economic response team to look at every facet of our business and find ways to better serve our customers and reduce costs while still enhancing safety and quality. Our teammates have stepped up and provided a lot of smart suggestions, which are helping us achieve these objectives. We have had to adjust production in our plants and in some cases reduce our workforce to align our business with current market demand and hit responsible inventory targets. These decisions are painful but necessary due to the economic downturn. But we’re also continuing to push our business forward by investing in our Bridgestone and Firestone brands. Studies have shown companies that continue to market their brands during economic downturns do measurably better during the economic recovery than those who cut marketing programs. And our research shows that our sports marketing partnerships are clearly moving the needle. We’re also making organizational changes to improve our speed to market and make us even more customer focused. Bridgestone Americas will continue to be well-positioned for growth and sustainable profits when the economy recovers.

Continental’s Schoenberg: The economic downturn has actually opened some new avenues for Continental in the Americas. We’ve created a product portfolio that is easier for our dealers to sell. As a result, we as a company are acutely aware of the need for tires that deliver more value in terms of proven performance, excellent treadwear, and even value-added roadside assistance packages. In addition, the economic situation has freed up capacity in our plants, which allowed us to transfer production from Europe to the Americas faster than originally forecasted. More Continental and General tires will be U.S.-produced in both the UHP and winter tires segments. Our focus is on the right kinds of vehicles that will deliver the best replacement results in terms of sales and profits. This is precisely the strategy behind our Continental ExtremeContact lines and the powerline launch for General Tire’s Altimax line – each of which is targeted to deliver 80% market coverage. We’ve also taken into account that in today’s economy, consumers are more apt to do their homework and they understand the difference between price and value. We are able to stand behind our tires with industry-leading warranties because they are built with impressive performance attributes and are engineered to last. Our tires represent a solid value. Our growth strategy in the Americas will place additional focus on the South American markets in upcoming years as well as U.S. market.

Cooper’s Armes: We have actively been moving along a path that was outlined in our Strategic Plan. This calls for the establishment of a sustainable competitive cost base, delivering profitable top line growth and enhancing our organizational capabilities. The downturn in the global economy forced us to make some difficult decisions. We also had to move faster on some projects and it slowed us down in other areas.  We'll continue to be cautious about our liquidity while there is uncertainty in the capital markets. Regardless of what occurs with the economy, we are working to make Cooper a more competitive company during this downturn and should be positioned for greater success when the economy revives.

Goodyear’s Kramer: Weak industry demand, coupled with peak raw material costs, has driven a year-over-year decline in financial results. For the most part, we have stayed on our strategies, which are imbedded with flexibility. We believe Goodyear is positioned for success when markets recover. This continuing strategy includes a combination of new products, the strength of our customer relationships, an advantaged supply chain, our portfolio breadth, our manufacturing and distribution footprint, and more. We also believe that Goodyear’s new product engine and industry-leading innovations have placed us in a good spot. That innovation mindset transcends products to business processes and our approach to the market, utilizing flexibility to adapt to changing conditions. Perhaps best of all, from the tire dealer’s point of view, Goodyear’s innovation and leadership serve as a guide for our customers to help stay a step ahead of economic challenges.

Hankook’s Pae: Our business plan remains unchanged. We have continued with our investments in building our brand through advertising and marketing support. We are constantly working to make it easier for all of our dealers, large and small, to do more business with us. Our focus is on efficiency. For example, we know that many dealers have reduced their inventories and are looking for smaller but more frequent deliveries. Our new Web-based ordering system is designed to reduce the amount of time a dealer needs to spend placing and tracking their orders. At the same time, we’ve expanded and improved our warehousing and distribution systems to substantially improve fill rates. These initiatives are working and the interest and demand for our products remains strong.

Michelin’s Wilkerson: We battened down the hatches to best weather this economic storm. That means temporarily lowering plant production and inventory levels to meet reduced market demand and delaying some capital expenditures. Our cost-cutting and efficiency improvement effort was already well under way as part of our Horizon 2010 plan and those gains gave us a great leg up during this crisis. We’ve also worked closely with our dealers, fleets and other customers in a collaborative fashion to help best manage their tire inventories, optimize fleet maintenance and adjust consumer marketing efforts to the current market reality. We are well positioned to ride out this difficult period and come out strong on the other side. The one thing that all crises have in common is that they all end. Michelin is working hard to make sure our plants, our teams and our customers are well prepared to take full advantage when the market rebounds.

Pirelli’s Pace: We were quick to launch an aggressive restructuring initiative during the fourth quarter, 2008. At that time the company took a 100 million euro charge, announced the 2009 closure of its tire plant in Spain and began a right-sizing program throughout Europe to reduce 15% (1,500) of our blue-collar and white-collar personnel. Within our North American business, manufacturing schedules were adjusted to balance inventory against weakening market demand; product planning was revisited to accelerate production of new, high value added tires for our MIRS facility in Rome, Ga.; marketing and communications strategies were refocused to exploit tactical opportunities; and cost reduction measures were introduced in every area of the company. As the economy improves and demand picks-up, we are well positioned for growth because of our continued investments in R&D, new products and leading edge marketing. And, of course, we will maintain an emphasis on continuous improvement in operating efficiency and cost control.

Toyo’s Takagi: Our goal of offering quality products and outstanding customer service has remained steadfast since 1945. Over time, our products have evolved and we have grown to meet the needs of our dealers and the demands of consumers. Today, I can proudly say we offer a well-rounded line of products.  We believe that growth in sales and market share will not come from focusing on just one segment but rather from a mix of quality tires that provide consumers with excellent value. For example, right now everyone wants to talk about small cars and yet we continue to see growth in light truck tire sales.  Are new light truck vehicle and SUV sales down? Yes. Are there still light trucks and SUVs on the road that need replacement tires? Yes. And, to be frank, the demand is never going away. As a company, we must continue to provide excellent products for all vehicles and applications. When a customer is pleased with a product and believes it is a great value, they will buy Toyo tires again and again. And when I say value, I don’t mean the very lowest price. I mean exceeding in areas that are important to a customer – quality, performance, long wear, options when it comes to size and a reputable company with a consumer relations department ready to answer questions. If you can give all of this at a price the customer considers fair, you are delivering great value to that customer. This brings me to the current economic situation. Over the last 18 months, we as an industry have seen an overall decrease in sales. When people are purchasing tires, many are more price-sensitive than two or three years ago. Fewer people are considering plus sizing or expensive wheel and tire packages. Taking all of this into consideration, we recently introduced a new line of products focused on delivering Toyo tires quality at a price that will likely surprise a few people. From a marketing perspective, our overall approach has not changed. Every year we work to maximize our budget and evaluate our efforts. Like consumers, we want the best value for our money. Our focus remains on increasing brand and product awareness. We know this is critical to our success as well as the success of our partners, the independent tire dealers. An integrated marketing approach that includes national TV and print advertising, point-of-purchase kits, a user-friendly web site, public relations efforts and a variety of event sponsorships puts the Toyo name in front of potential customers and drives business to our dealers.

Yokohama’s Oishi: We’re concentrating on continually moving forward and working through these difficult economic times. Obviously there’s a slowdown in the entire industry, and like every other good company, we know that cash preservation is critical. So we’re reviewing everything we do all over again. ‘Is it critical today?’ ‘Can we delay it?’ ‘Can we do it when the economy comes back?’ We’re practicing the three ‘Rs’ – reuse, reduce and recycle – to stay lean. The key is to remain strong and be ready when the recession is over. What’s also been helpful is that we’re confident of our products and have a strong customer base. Good customers, good employees and good products drive a good company, especially through tough times.


2) With the changes we have seen in the auto industry and consumer demand for smaller, more fuel efficient vehicles, how do you see these changes impacting your company and the industry over the next 10 years?

Bridgestone’s Emkes: The demand for smaller, more fuel-efficient vehicles is being driven by two factors: volatile fuel prices and consumers embracing the ‘green’ movement. While we can’t control fuel prices, we can and do strive to manufacture fuel-efficient products in an environmentally-friendly way. Through our ‘One Team, One Planet’ global initiative we’re embracing this challenge and working every day to improve our processes and systems while reducing energy consumption in our facilities. We are refining our procedures and, where possible, we are eliminating waste and recycling what’s left over. We’re also embracing innovative technologies to save energy. In our plants, we are using low energy lighting and high efficiency fans. The use of hydrogen fuel cells in our plant’s material movers has enabled us to efficiently move materials and reduce energy consumption and emissions in our facilities. We’re especially proud of our Warren County, Tenn., plant, which earned LEED (Leadership in Energy and Environmental Design) Silver Certification from the U.S. Green Building Council last year. LEED is a recognition of outstanding environmental building design and utilization that is rarely given to existing manufacturing sites. This is the first LEED certification for a tire plant in the world. On the product side, this year we introduced our low rolling resistance Bridgestone Ecopia tires in North America. We’re also building Ecopia technology into some of our more popular Bridgestone brand tire lines, including the Turanza and the Potenza lines. Retreading truck tires is also an effective way to reduce a tire’s environmental footprint. We have made a concentrated effort to reduce, re-use and recycle. By retreading a tire casing four or five times, we are reducing the need to manufacture new tires. The green movement is here to stay. And we’re committed to being an environmental leader through the kinds of products we make and how we make them. Consumers demand it. The government mandates it. Our planet needs it. It’s not simply about good business; it’s the right thing to do.  
 

Continental’s Schoenberg: Our ongoing challenge is to build environmentally friendly tires using sustainable materials and processes. In the coming years, we will continue to focus our efforts on engineering tires with lower rolling resistance for improved fuel economy and reduced CO2 emissions. Vehicle manufacturers and consumers alike are demanding it, and we’ve made some impressive inroads. With our ExtremeContact line, our engineers have been able to combine both performance and lowered rolling resistance into the same tire, without compromising either characteristic. However, we will not compromise product attributes such as braking for ‘popular’ marketing efforts. Continental will continue to focus in these areas over the next 10 years, as well as monitor the changing consumer market and react to changes in that environment.

Cooper’s Armes: Consumer’s needs have always changed over time. To be a successful company you need to adapt to those changes. Cooper has a wide offering of products that satisfy a variety of consumers needs. We offer a fuel-efficient tire, the Cooper GFE, and have the sizes that drivers need. We will continue to develop products that will meet the markets needs. As relevant as the increase in smaller, more fuel-efficient vehicles will be the continued increase in the number of different tires that are offered. This is driven by the use of unique fitments and applications used by the OEMs. Dealing with the complexity this brings to a tire manufacturer is extremely important. The footprint we have developed over the last several years provides the opportunity for the company to take advantage of changing market needs. 

Goodyear’s Kramer: Most research shows consumers want smaller, more fuel-efficient vehicles, but they must have vehicles that meet their needs – and those needs will always change. Our relationships with OEMs, combined with our research, allow us to stay ahead of the changing needs of the market. Timely introductions of products that fulfill the needs of drivers make it easier for our retailers to meet those consumer needs. A great example of this is the new Goodyear Assurance Fuel Max – a tire that helps provide improved fuel efficiency without compromising performance. We quickly brought this tire to market when consumers expressed an interest in saving gas after prices reached $4 per gallon last summer. Our retail network knows Goodyear will continue to demonstrate flexibility and innovative thinking to meet current and future needs.

Hankook’s Pae: Realistically it is still too early to tell what the long-term effects will be. Our investments in manufacturing technology and capacity expansion give us very good production flexibility so we will be able to meet the demand as trends develop. We have been and remain a full-line supplier. With a renewed consumer interest in ‘value,’ I think this will lead to even more opportunities for Hankook. With regards to tire sizing, as OEMs make changes, we’ll be ready to adjust as appropriate but these changes may be one or two more years down the road for the replacement market.

Michelin’s Wilkerson: The current economic crisis has definitely magnified consumer attention on value for the dollar. Consumers are driving fewer miles, delaying vehicle and tire purchases and shopping hard for good bargains. At the same time, consumers are not willing to sacrifice safety or long tire life – they are demanding it all. That consumer need fits perfectly with Michelin’s emphasis on fuel-efficient tires that deliver significant savings at the pump without sacrificing the long tire life and excellent safety performance that consumers have come to expect. OEMs are recognizing Michelin’s superiority in this arena as well, choosing Michelin Green X tires for a variety of fuel-efficient and hybrid fitments. The pending NHTSA regulation on consumer information regarding tire fuel economy offers an opportunity to educate consumers on the important role tires play in the overall fuel-efficiency of their vehicles. It’s vital that we, as an industry, working with the NHTSA and state regulators, get it right in terms of fuel-efficiency grading, labeling and standards.

Pirelli’s Pace: Meeting the challenge of shifting market trends is where Pirelli’s above industry average R&D investment really pays off. We continue to focus on developing tires that make significant improvements in vehicle fuel efficiency.  Pirelli just introduced new technology in Europe that lowers rolling resistance and improves mileage in car, SUV and commercial tires. The first tire to incorporate this technology is the new P7 Cinturato that we believe to be the first green performance tire on the market. This same technology will be incorporated in the new tire lines soon to be introduced in North America. While fuel efficiency improvements will continue to evolve in the U.S., we do not see consumers easily sacrificing safety, comfort and interior size by shifting to small size cars.  Popularity of large platform vehicles will decline, but SUVs are proliferating in scaled-down versions and will progressively replace traditional sedans. Tire sizes won’t get smaller, but dimensions will change while overall diameters remain constant. For example, the185/65R14 will shift to a 195/55R16 or to a 205/45R17, and the 185/70R14 will transition to a 205/45R17 and then to a 215/35R19.

Toyo’s Takagi: The changes in vehicles will certainly have an impact on our industry and Toyo as a company. One area that is constantly evolving and influenced by the auto manufacturers is wheel and tire size. When planning for new products and growing existing lines we always consider OE sizes for the target vehicles. For several years the trend was larger OE wheels and tires; we released sizes to meet those replacement needs. The question is: What is next? Will OE sizes remain relatively flat, topping out at about 19 inches, or will they begin to decrease? Regardless, this will influence the replacement tire market.  In a few years, those vehicle owners will need new tires and we must have the right tires for them. We must also consider features when we are planning for future replacement tires. The movement towards more eco-friendly, fuel-efficient tires is being led in part by consumers, as well as legislative action. As a result, we will continue to see more and more tires, both OE and replacement, marketed as such. However, how much weight this truly has on a consumer’s purchasing decision is still to be seen. How much emphasis will the sports car owner put on this over other features and benefits? Part of our job is to meet this growing demand with safe, quality products. We want to deliver a tire with low rolling resistance as well as high marks in performance such as braking and wet handling. For example, we were recently awarded a 17-inch OE fitment on the new Toyota Prius V, which is their premium model. The Toyo Proxes A20 was selected for its low rolling resistance as well as handling and ride comfort. Our new Extensa A/S also has improved marks in low rolling resistance over older products. Our engineers in Japan were recently honored with the Award for Technical Development by the Society of Automotive Engineers of Japan.  Partnering with Honda R&D Co., their work focused on a tire tread rubber that reduces rolling resistance and decreases braking distance. The technology has now been applied to a tire in Japan. As this R&D continues, we will continue to improve and enhance our products sold in the U.S.

Yokohama’s Oishi: Vehicle manufacturers realize the world will not be populated with just micro cars. Consumers will drive the manufacturers to produce fuel-efficient models in all categories of vehicles. We think consumers will buy the vehicle that’s the right size for them, so we will continue to produce tires in a variety of sizes for all types of vehicles. What’s important for us is not the size of the tire. Instead, we focus on how it’s made and what it’s made of. For example, Yokohama just launched the dB Super E-spec tire in the U.S. This eco-focused tire blends orange oil extracted from peels at juicing plants along with natural rubber to drastically cut the use of petroleum – without compromising performance. The dB Super E-spec and orange oil technology are part of Yokohama’s overall company mandate to produce world-class products while protecting the environment. Every gallon of gas saved by the tire means 20 fewer pounds of CO2 released into the atmosphere. This idea of making eco-friendly tires also includes the Zenvironment line of longer-lasting, fuel-efficient truck tires. So no matter what OEMs produce – small or large vehicles – Yokohama will have fuel-efficient, low rolling resistance tires ready for them. The key is to make these types of tires perform as good as or better than regular tires.


3) Every major tiremaker has its own “green” initiatives – be it in their products or approach to society. But what one green avenue do you see as the most impactful and sustainable and how is your company tackling that issue?


Bridgestone’s Emkes: By continuously improving our process and systems to eliminate waste, reduce energy usage and increase recycling, we’re making changes that are sustainable and significantly lessen our impact on the environment. Since 2003, we’ve reduced total waste per ton of product by 34%, while increasing waste recycled per ton of product by 25%. This is a reduction of 10,000 tons of waste per year. By embracing innovative green technologies like hydrogen fuel cells to power our material movers we’re reducing consumption and eliminating harmful emissions. We will continue to employ new technologies to improve our environmental footprint and make our operations more efficient. 

Continental’s Schoenberg: Nearly 20 years ago, we became one of the first tire manufacturers in the world to launch an environmentally-friendly passenger tire featuring special fuel-saving and high-mileage benefits – the ContiEcoContact. Continental also has a long-standing relationship with the European Union REACH program and the World Business Council for Sustainable Development, focused on environmental responsibility. For years, Continental has been a global-supplier to the auto OEMs that require that rolling resistance and fuel efficiency built into the tires they put on their vehicles at the factory. Now and going forward, we are focused on what we call ‘responsibility,’ which entails environment, fuel efficiency and community. We have implemented a number of corporate-wide business practices aimed at reducing this company’s carbon footprint by reducing waste and our energy needs. As a manufacturer, Continental will continue to focus on using sustainable raw materials whenever possible, and we are committed to investing in lean manufacturing processes. We support a variety of community efforts and will continue to seek new opportunities. Every employee in the company is working toward this goal.

Cooper’s Armes: We have not only developed more fuel-efficient tires, we have also focused on ‘greening’ our processes. To that extent Cooper has earned the U.S. Department of Energy’s Energy Star Partner designation, distinguishing it as the sole tire manufacturer to merit such an honor and as an industry leader in completing green activities. Having won this recognition demonstrates how we approach opportunities like being environmentally friendly. It’s not a single action we have taken, but a part of our everyday actions. As we move forward we will find even better ways to ‘green’ Cooper.

Goodyear’s Kramer: Goodyear has multiple green initiative, from the recycling of fluids in our stores, to the water and energy conservation in our factories, to its leadership role in achieving a ‘zero waste to landfill’ initiative in the area of manufacturing wastes. But what seems to be most impactful and sustainable for a tire company is to provide products that can help consumers achieve their goal of using less gas. This practice is obviously good for the environment, but also beneficial for the drivers who wish to save money. Goodyear has been promoting proper tire maintenance and inflation for years, as a way for motorists to achieve better product performance and to save on fuel costs. Recently, Goodyear has been a leader in commercial truck tires with the extensive line of Fuel Max truck tires, and earlier this year, we introduced the Assurance Fuel Max line for most passenger cars on the road today. This represents coverage of about 80% of target automobiles with an affordable product that consumers really want. This type of breakthrough technology is impactful and sustainable, and Goodyear will continue to strive for technological advances that deliver relevant benefits.

Hankook’s Pae:  Last year we introduced our Kontrol technology philosophy, which acknowledges our responsibility to reduce rolling resistance and reduce emissions while respecting and protecting the environment for future generations. Our key initiative in ‘being green’ is to move forward on all fronts that can affect this from materials, to manufacturing processes, to distribution and, of course, to the tires themselves. However, we refuse compromise when it comes to safety and performance as we are developing the technologies and products that are better for the environment and the economy. With this safeguard in mind, we remain focused on our core values: providing the highest quality tires to meet consumer demand for low cost per mile and contributing to fuel economy, and maintaining a supply chain that maximizes the efficiencies of order processing, tire warehousing, shipping and distribution all of which helps us and our dealers manage costs and environmental impact.

Michelin’s Wilkerson: Michelin has a stated objective to reduce the impact of our products and activities on the natural world. That commitment takes many forms from the environmental footprint of our ISO14001-certified plants to spurring tire recycling efforts. Far and away, the most impactful environmental progress Michelin is making is in the fuel-efficiency of our tires. Many may be surprised to learn that 86% of a tire’s impact on the environment occurs during its useful life on a vehicle. Up to 20% of the fuel consumption of a passenger vehicle is due to the rolling resistance of the tires – and that can be up to 30% or more for commercial vehicles. We know that the way to make real progress in reducing greenhouse gas emissions and lessening the impact of road transportation on the environment is to maximize tire fuel economy while maintaining other top performances, notably wear life, handling and wet braking. A tire that delivers fuel savings but which has to be replaced every 30,000 miles is not a win for the environment or the consumer. At the end of 2007, Michelin committed to reduce by half the materials necessary to produce a tire, the rolling resistance average and to improve braking distances by 2030. We are well on our way towards that goal and this effort has the full support of our research, industrial and business teams.

Pirelli’s Pace: The ‘green’ concept relates not only to design and technology, but also to the materials used in a tire (bio-derived materials, such as rice husk replacing silica) and the energy consumed by factories that make tires. Right now we have a factory under construction in Italy that requires only 50% of the energy used by the factory it is replacing. And there is always the tire industry challenge to convince consumers to properly maintain the air pressure in their tires. This alone will extend the life of the average tire and reduce CO2 emissions. The ‘green avenue’ we pursue at Pirelli is to expand our culture of awareness and continuously deliver innovative and industry leading technologies, materials and processes for the benefit of Pirelli, its consumers and society.

Toyo’s Takagi: Toyo is seeking harmony between technology and the environment. By achieving this harmony, or ‘tecology’ as we call it, we can make truly eco-friendly tires from beginning to end. As part of our Vision 15 plan, we have created a long-term environmental action plan. This includes evaluating and changing, as necessary, the materials, manufacturing process, transporting of the tires, performance of the tires once in service and the disposal once the tires are taken out of service. Our goal is to make all of our tire products environmentally friendly by 2015, the 70th anniversary of Toyo. Improving fuel efficiency of our tires, utilizing recycled materials in tire production and reducing CO2 emissions are all actions we are taking today. We are focused on developing new consumer and commercial tires with less rolling resistance. At the same time, we are focused on maintaining the highest possible level of safety and performance. The development of a tire tread rubber that reduces rolling resistance while at the same time decreasing braking distance, OE tires like our Proxes A20 that can meet the rigorous low rolling resistance standards set forth by auto manufacturers, these are all efforts we are taking to deliver the best possible products both now and in the future. In Japan and Europe, we recently introduced the Proxes Ne. Not only is Proxes Ne fuel efficient but it is built with recycled polyester carcass ply. As an industry, we are just beginning to explore the vast world of using recycled products in manufacturing. Our manufacturing plant in White, Ga., is a low-emission, low-waste manufacturing plant. We are also reducing the use of fuels and CO2 emissions by shortening the distance tires must travel to reach our dealers in North America. Efforts to achieve our goal are underway everyday in Japan, the U.S. and all around the world.

Yokohama’s Oishi: Being green is in our corporate DNA. Very few companies are really green, but we are. Mr. Nagumo, the president of Yokohama Rubber Co., our parent company in Japan, wants us to be the environmental leader in the tire industry. We have an environmental mandate – a green initiative – which is part of YRC’s ‘Grand Design 100’ plan, a corporate mandate issued to coincide with our 100th anniversary in 2017. It’s designed to have Yokohama harmonize our company-wide operations in everything from manufacturing to product design. The plan outlines how we will reduce the environmental impact made by every one of our products. Currently, YRC has zero-emissions of waste at all of its manufacturing sites in Japan and we’re expanding this approach to other facilities globally. If you’ve ever been in a tire factory, you know how much natural waste can be generated. To get to zero waste emissions is a miraculous accomplishment. The plants have achieved an 8% reduction in CO2 emissions, exceeding targets set by the Kyoto Protocol on climate change. In the U.S. and worldwide, our plants are ISO14001-certified for environmental standards. Also part of the GD100 is the continued development of eco-friendly consumer and commercial products. Yokohama also launched ‘Forever Forest,’ which is part of our environmental preservation activities designed to absorb carbon dioxide from the atmosphere. We will ultimately plant 500,000 trees, creating nearly 25 acres of new forest. Yokohama will continue to be dedicated to both environmental and social responsibility. Even here in the U.S. we’re trying to go paperless in our offices. It’s amazing how much paper you go through. That’s part of social responsibility. We’re trying to get our employees to think about environmental recycling and reducing consumption so they not only do it here, they do it at home.