Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Eclipse of the U.S. Tire Industry

Contents:

Author Info

  • Raghuram Rajan
  • Paolo Volpin
  • Luigi Zingales

Abstract

This paper undertakes an in-depth analysis of the tire industry over the period 1970-1990. It attempts to uncover the causes and consequences of the acquisition activity in the industry in the 1980’s, which resulted in all but one large U.S. tire manufacturer being sold to foreign companies. We do not find that ownership was acquired by firms more efficient at managing the existing plants. Nor were the takeovers undertaken in response to the failure of internal control systems to induce downsizing. The most likely explanation is that the acquisitions were driven by an increase in cross-border production and trade by automobile manufacturers. This increased the need for cross-border production by the tire manufacturers that, in a slow growth industry, could only happen through acquisitions. U.S. manufacturers became the natural targets of this wave of acquisitions because they had delayed investment in the radial technology and, thus, had high costs of staying in the industry.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: ftp://ftp2.census.gov/ces/wp/1997/CES-WP-97-13.pdf
File Function: First version, 1997
Download Restriction: no

Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 97-13.

as in new window
Length: 49 pages
Date of creation: Jun 1997
Date of revision:
Handle: RePEc:cen:wpaper:97-13

Contact details of provider:
Postal: 4600 Silver Hill Road, Washington, DC 20233
Phone: (301) 763-6460
Fax: (301) 763-5935
Email:
Web page: http://www.census.gov/ces
More information through EDIRC

Related research

Keywords: tire industry; mergers; productivity; foreign; competition; radial tire technology;

Other versions of this item:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Baker, Malcolm & Pan, Xin & Wurgler, Jeffrey, 2012. "The effect of reference point prices on mergers and acquisitions," Journal of Financial Economics, Elsevier, vol. 106(1), pages 49-71.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cen:wpaper:97-13. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fariha Kamal).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.