Dunlop and Falken urge policymakers to carefully assess the long-term effects on consumer safety, choice, affordability, competition, vehicle use and California's automotive aftermarket<div style="float:right;padding:0 0 15px 20px;margin:15px 0 20px 20px;width:300px">
 Dunlop Tires North America Headquarters in Rancho Cucamonga, California 
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 <figcaption>Dunlop Tires North America Headquarters in Rancho Cucamonga, California </figcaption>
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</div>RANCHO CUCAMONGA, Calif., Aug. 19, 2026 <a href="https://www.globenewswire.com" target="_blank">(GLOBE NEWSWIRE)</a> -- Dunlop Tires North America (DTNA), a subsidiary of Sumitomo Rubber Industries, Ltd., recognizes the environmental objectives behind efforts to reduce tire rolling resistance and improve vehicle efficiency. We do not discount the importance of those objectives, nor do we oppose responsible efforts to improve the efficiency of the products our industry manufactures. While environmental impact is highly important, our concern is that the new rules do not fully address the complexity of tire design since a tire is not developed around a single performance characteristic. Depending on the application, a tire is engineered to include a balance of rolling resistance, traction, tread life, durability, handling, load capability, weather performance, ride, noise and cost. DTNA believes California must be equally careful to ensure that improving one of those characteristics does not unintentionally compromise the performance, choices, affordability and competition that consumers depend upon from the replacement tire market. The ultimate measure of this program should therefore not simply be whether California achieves lower tire rolling resistance. It should be whether California achieves a better overall outcome for the environment without creating a material adverse impact on consumers, consumer choice, competition or trade. ORIGINAL-EQUIPMENT TIRES AND REPLACEMENT TIRES SERVE DIFFERENT PURPOSES Understanding this issue begins with understanding why original-equipment and replacement tires exist. Original-equipment (OE) tires are developed in close cooperation with vehicle manufacturers for a particular vehicle platform. They are engineered to satisfy a specific combination of performance requirements established during development of that vehicle. Those requirements can include ride, noise, handling, braking, weight, durability and rolling resistance. They also support vehicle manufacturers' obligations and objectives associated with Corporate Average Fuel Economy (CAFE) requirements—the federal standards governing average fuel economy across a manufacturer's vehicle fleet. Rolling resistance can therefore carry significant importance during OE tire development because reducing the energy required to move the tire contributes to the overall efficiency of the vehicle and helps vehicle manufacturers meet these regulatory fuel-economy objectives. While that is a legitimate engineering and regulatory objective, it prioritizes, in part, a public-policy requirement rather than solely optimizing the tire for the individual consumer, the vehicle throughout its useful life, or every application in which that vehicle may eventually operate. That distinction is fundamental to DTNA's concern. Consumers may prioritize tread life, wet or winter traction, durability, towing, off-road capability, handling, ride quality, price, or total cost per mile. Vehicle use and geography also change over time. California drivers encounter everything from coastal roads and desert heat to mountain conditions and snow. Replacement tire regulations should preserve the ability to choose products appropriate for different vehicles, applications, budgets, and environments. An OE tire is developed to satisfy the performance and fuel-economy objectives established for a new vehicle. A replacement tire must satisfy the real-world requirements of the consumer. EFFICIENCY MUST BE EVALUATED ALONGSIDE THE COMPLETE TIRE Lower rolling resistance can reduce fuel or electricity consumption, but it is only one part of the overall equation. Consumers also take into consideration the tire’s price, safety, tread life, traction, durability, and replacement frequency. California should therefore evaluate the complete economic and environmental lifecycle of a tire—not rolling resistance alone. If a tire costs more, wears faster, or is less appropriate for a particular application, the expected efficiency benefit may be reduced or eliminated. Tire life is also an environmental consideration. DTNA believes environmental analysis should examine the complete lifecycle of the tire from manufacture, service life, energy contribution to end-of-life disposition. California already manages a significant scrap-tire stream. Any policy capable of changing tire replacement frequency should therefore consider the resulting impact on tire recycling and disposal infrastructure. SAFETY MUST REMAIN FUNDAMENTAL Rolling resistance cannot be assessed independently from safety and performance. Wet grip is important, but so are hydroplaning resistance, winter traction, durability, load capability, temperature performance, tread life, and application-specific performance. Regulatory success should be measured by real-world performance across a broad range of tires and applications, not simply by compliance with a single efficiency metric. COMPETITION AND PRODUCT AVAILABILITY MATTER Developing and validating new tire products requires significant engineering, testing, tooling, manufacturing changes, and investment. Manufacturers must balance efficiency with traction, tread life, durability, handling, and cost across hundreds of sizes and applications. Implementation timelines should recognize these realities. Requirements that are difficult to meet across a broad product range could reduce the number of manufacturers and products available to California consumers, particularly among smaller and specialized suppliers. A healthy replacement tire market benefits consumers through greater choice, competitive pricing, and continued product innovation. THE BROADER AUTOMOTIVE AFTERMARKET  Tires support a large network of independent dealers, repair facilities, wheel retailers, suspension shops, performance businesses, off-road companies, and vehicle customization businesses. If tire availability becomes significantly narrower, the effects could extend well beyond tire manufacturers and retailers. California should assess these broader economic impacts when evaluating implementation. EFFICIENCY BEYOND TIRE DESIGN California should also examine opportunities to improve efficiency through tire maintenance. Proper inflation is critical to tire performance and efficiency, and modern vehicles already have tire-pressure monitoring technology. Improved pressure monitoring, clearer driver notifications, and better integration of vehicle technologies could produce meaningful efficiency benefits throughout a vehicle’s life without unnecessarily restricting appropriate replacement tire choices. DTNA’S POSITION DTNA supports responsible environmental progress and improvements in tire efficiency. We believe, however, that California should evaluate the complete consequences of replacement tire requirements. Consumers should retain access to tires appropriate for their vehicles, geography, budgets, and intended use. Manufacturers should have realistic timelines to develop and validate compliant products. Competition should remain strong, safety should remain fundamental, and the economic and environmental lifecycle of the tire should be considered alongside rolling resistance. DTNA recommends continued engagement among California policymakers, manufacturers, dealers, consumers, and the broader automotive industry to achieve meaningful environmental improvements without creating material adverse impacts on consumers, consumer choice, competition, or trade. INDUSTRY AND MEDIA INQUIRIES Industry representatives, trade organizations and other stakeholders with questions, concerns or interest in further discussion regarding California's Replacement Tire Efficiency Program are encouraged to contact Darren Thomas, President &amp; CEO of Dunlop Tires North America (DTNA) directly at: dthomas@dunloptires.com DTNA welcomes constructive dialogue and industry engagement as California moves forward with implementation of these requirements. 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DTNA Statement on California Replacement Tire Efficiency Requirements

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