RPM Automotive Group strikes distribution deal with Yokohama to boost local presence

RPM Automotive Group (ASX: RPM) has secured a deal with Yokohama Tyre Australia for the sub-wholesale distribution of Yokohama products through RPM’s national network.

RPM will also operate as a preferred supplier to Yokohama’s Tyres & More retail chain throughout Australia, with a view to servicing a substantial portion of the annual supply value with non-Yokohama brands.

The company said the deal would help solidify its position in the tyre supply chain while unlocking additional sales, particularly in the commercial- and light-truck sectors where RPM has a strong presence.

It aims to leverage its wholesale and retail infrastructure and back-end logistical capabilities to enhance Yokohama’s national reach and optimise distribution efficiency.

All distribution initiatives with Yokohama will operate under RPM Automotive subsidiary RPM Autoparts.

‘Pivotal step’

Newly-appointed RPM chief executive officer Guy Nicholls said the agreement marked a “pivotal step” in the company’s progression through Australia’s aftermarket motoring sector.

“This deal will enhance our extensive network and logistics capabilities and positions us as one of Yokohama’s national sub-wholesale distribution partners, underscoring our commitment to optimising distribution efficiency,” he said.

“We will also operate as a vital supply partner to Yokohama’s retail network, further solidifying our role in the tyre supply chain.”

He said the relationship would drive efficiencies and give the companies access to each other’s supply networks.

Existing alignment

Yokohama national sales manager Tatsuya Kano said the agreement would strengthen an existing alignment between RPM and Yokohama products and services.

“This will allow us to collaboratively take further market share in the Australian tyre industry,” he said.

“Yokohama is a diverse manufacturer servicing most segments of the tyre industry and our alignment with RPM will no doubt deliver substantial benefits to both parties.”

CEO appointment

Earlier this month, RPM appointed former chief operating officer Mr Nicholls to the role of chief executive officer.

Mr Nicholls has over 30 years of automotive expertise with companies including GUD Holdings (ASX: GUD) subsidiary Ryco Group, Genuine Parts Company (which owns Repco Auto Parts) and REDARC Electronics.

He spent six years on the board of the Australian Automotive Aftermarket Association, where he helped advocate for aftermarket products and services to be protected within new car statutory warranty periods.

Mr Nicholls succeeds former chief executive officer and RPM co-founder Clive Finkelstein, who will continue his involvement as chief commercial officer to progress strategic initiatives and commercial development within the group.

Mr Nicholls remains an executive director of the RPM board, which he joined in August 2022.