AP exclusive tire supplier of Macau Grand Prix Yokohama Rubber (China) Co., Ltd. Xin Norio Island in the tournament held last weekend to accept a media interview, to Yokohama Rubber's input for the motor sport and the China market strategy make the introduction. Norio Xin island described in detail as a special tire supplier equation touring car tires and some different tires, as well as strategic vision motorsports market. The following is the second interview excerpts. Q: YOKOHAMA (excellent subjects haoma) tires as China Touring Car Championship (CTCC) for a single tire supplier, but also the WTCC and F3 of the single tire supplier, you from the technical inputs, capital return point of view, these two events strategy in China, explained what the status of it? Norio Xin Island: First explain and CTCC WTCC sponsorship tires. Because the WTCC in the world 12 Speedway race, so need to deal with a specification of the tire 12 different track conditions, whether the place is hot, or cold places, where good grip, or compare slippery, especially where race is a street circuit of Macau, the track is very slippery. We have to be under various conditions using the same specifications of the tires. Moreover, there battle WTCC Chevrolet, BMW, Seat, and other different cars, so we will develop for the WTCC relatively high versatility, you can easily deal with various situations of tires. CTCC is a tournament held in various cities in China, there are many car types. We first participated in the WTCC, then became involved in CTCC, so in principle, we supply tires and WTCC CTCC, is versatility higher tire. For us, hope to provide the same for the WTCC and the CTCC tires, but because the world market and the situation is different in China, signed agreements with the organizers of the sponsorship fee and tire sales in the price are different, so we have to tires to make some adjustments, the two events are different tires. However, only two tires on the side of the tire brand identity is different, its internal structure, the compound is the same. F3 went on to say about the tires. This year we are to the German F3 race of the season to provide tires. In addition F3 races in other countries by other manufacturers to provide tires. The Macau Formula Three Grand Prix Series (F3) is an annual national championship and the players come together quite early qualifying races. So we to show our fairness, Macao special tires to provide a unified event. Q: Since the Macau Grand Prix is a street race, everyone will be more concerned about environmental protection. Yokohama Rubber technical staff would like to ask the circuit for the case of Macao, in the technical, environmental aspects have to do some of the more tire targeted for improvement? How about our large-scale project team responsible for the tire? Match the supply of tires is the number? Is provided free of charge? Norio Xin Island: environmental protection, beginning this year in the WTCC race tires we used orange peel oil technology. The race tires used in orange peel oil, and we are in the Chinese tire market in the general promotion of orange peel oil using the same. Orange peel oil is our race tires in the development process of discovery of a material. About a decade ago, in the F3000 for the development of the Japanese tire found this material. Its purpose was simply the development is to improve the grip, but subsequent studies have found that using the orange peel oil is also effective in reducing fuel consumption, so this material will be used increasingly in general tires. WTCC materials used tires into the oil extracted from orange peel oil, to achieve environmental protection, which can be used in this tournament. But the WTCC races in order to maintain the same performance guarantee requirements of fairness, so although we use the orange peel oil, but still ensure that the performance of the tire and the prior year. We provide dry F3 tires 800, tires 500 wetlands, WTCC is almost the same amount. A number of other ancillary events, we also offer tires. So the total was about 3500 or so. Services team, specializing in specific operations of more than 20 staff, responsible for the reception staff of about 20, about 40 staff. Because we and Macau Grand Prix (F3) the organizers have an agreement, so we provide free F3 tire, but we eventually want to recall all the tires. And for the WTCC and the CTCC, we are selling tires, to charge fees, but users can take tires tire. Q: YOKOHAMA (excellent subjects haoma) Touring Car Tires more emphasis on the application, there will be no future events sponsored by other considerations? Is it possible to enter the WRC, WRC next year because the tires began to open, and even a Chinese tire company has also entered, which is how your mind? Norio Xin Island: As you have said, WRC Pirelli up to this year is the exclusive sponsor of next year began to open. Of course, we are now considering whether to participate in WRC, but because it's part of the rule are special, so we will not compete next year yet. Than the WRC, the European IRC (Intercontinental Rally Challenge) and China's CRC, the rules of these events more common, and therefore we consider the development of these events with the tires. In fact, whether F1, WRC, or other events, we must consider the size of our business and publicity events on the basis of balance will make a choice. Based on that way of thinking, we chose to sponsor the current WTCC and F3. Q: The car will be changed next year WTCC 1.6T, on what tires to new challenges? It is reported that although the 1.6T engine because of the small, but the momentum is more powerful, may be required to force the tire for better performance. We know that the team has begun testing, and can not disclose terms of the Yokohama Rubber some cases for the next game? Norio Island Xin: I will speak about next year's WTCC with the 1.6T engine situation. To 1.6T, the biggest change is the engine torque increases. The increased engine torque, vehicle acceleration will become very good. During the competition, if the speed becomes faster, and in turn accelerate faster after the one-time increase in horizontal and vertical forces, which increase the durability of the tires had a great impact. Now we are related to the development team is racing, and in the development process will also try our own tires. To maintain impartiality, fairness, we should try not to change the tire performance in the premise for development. Therefore, how to ensure the grip the same in the case of maximizing the durability of our tires, which is to focus on the development of our future direction. But is not that we now offer the WTCC race tire durability problems, we have developed aims to further improve safety levels. That time whether or not to adjust the tires, we have to discuss with the FIA after the FIA to decide. Q: Yokohama Rubber to do F3 28 years after a single tire sponsor, can summarize the event sponsorship sales on the market which directly help? While the market for original equipment and retail markets, whether there are changes in the data? Norio Xin Island: There are two reasons to support motor sports. First of all racing is conducted very quickly, the test is very harsh on the tires, so participation in research and development of our high-performance race tires very helpful. Through participation in racing, you can test the limits of tire performance, durability, and its technical know-how to live for high-performance tire development. Second, events can also be involved in advocacy to the masses to prove YOKOHAMA (excellent subjects ho horses) of high-performance tires. Previously had a tendency to like people who like car racing. But whether it is in Japan or the United States, as demand changes, like ways are starting to become diversified. Now people may not like the car will certainly enjoy racing sports. Therefore, we will of course continue to support the future racing, but we will also participate in other sporting events through to publicize our tires. For example, when we in the United States sponsored American football, college football, professional basketball and professional baseball and other sports. In China, we are also considering what the future will sponsor sports events, please give us some good advice. We are in retail stores and customers to communicate through. From my own, hope our YOKOHAMA (Ruckus haoma) brand into a trust to provide our customers a brand. In order to get trust, one of the ways is to support the vehicles. We were in Japan for many automotive facilities, a large share. In addition, in Europe we are actively supporting efforts for the car. On Europe, we now think that high-performance vehicle matching for the goal. In the first wife, the tire manufacturer's technical advantages will be recognized only after the auto ancillary manufacturers. First, let the customer believe in your strength, in order to further allow customers to purchase your product, which is anywhere in the world are common. Therefore, in the Chinese market we will spare no effort to fight for car manufacturers to support. Now the whole, the proportion of our original equipment tires just under 50%. And for the automotive facilities, means approved by a car manufacturer, so that individual consumers can generally trust us to buy our products. This principle in all countries in the world are common. So in the future in China, we will also market and is committed to original equipment tire replacement market tires. Q: Many automobile manufacturers believe that China market is very important, then how to view China Yokohama rubber market? Norio Xin Island: I came to China, which in itself prove that the Chinese market position in our minds. For our group, the Chinese market is the most important market, especially from the scale of development, development potential, China market is very attractive. Unfortunately, this view of the Chinese market is not only our world, the idea of the other tire companies are the same. Therefore, the Chinese competition in the market situation is very grim. In such an environment, how do we distinguish it from other tire companies to seek their own development, I think it is very important. Q: Could you talk about your understanding of the Chinese tire market? Recent prices of raw materials more severe this year, in April each company have experienced a price increase, will not face a second price increase? Xin Ji Island Male: First, I 来到 China has three months, I really like Xunshi market's. We all know that the U.S. has 50 states, because when I'm working relationship between the United States has been one of the 49 states, local sales staff than in the U.S. to place even more. Similarly, I visited China about China as much as possible considering the market. Until now I have been to 17 provinces of China. In the time I visit China, and our provincial dealers of communication, a certain understanding of the market. My conclusion is that in China, the most important retail market. Our main task is not only to increase the number of retail stores, but also further improve the quality of retail outlets. Tires from the surface is very simple, is a dark, round objects, can not understand its performance. So when customers into the store I do not know what kind of tire choice, the retail shop if they can give appropriate recommendations, then the customer will be satisfied. In particular, I now feel more inclined young Chinese small and medium sized sports car driving, which would have expanded on the tire wheel size, and upgrade needs. And we are now considering how to give customers the right to build a suggested retail network. We need to develop retail stores may have the expertise and equipment, to the position of a customer to make recommendations to customers. If after six months so lucky to meet you again, I can talk about the Chinese market and more, and now I'm back only 3 months, I have my thoughts and future directions, only so much of. On raw material prices, sorry about that which we can not control. In particular, natural rubber, due to be affected by climate and other factors, so its price is much higher than synthetic rubber. As the trend of the future, we expect raw material prices will not drop down. However, in response to rising raw material prices, prices of our programs are not followed, we must first make their own efforts as much as possible, such as raising the production capacity of our factory; also committed to developing new technologies, not some multi-types of rubber, while trying to maintain our use of common rubber tire performance, that is, we try not to burden customers, through their own efforts to reduce the cost of raw materials to absorb the rising part. But when our efforts really can not fill up the space of raw materials, we may be in no other case of price increases on some products.

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