Business Notes TIRES Gulp!

As global competition in the tire industry has intensified, overseas firms have rolled over their U.S. rivals and acquired many of them. In the past two years, such brands as Firestone and General Tire have been taken over by foreign manufacturers. Last week the U.S. ranks were further deflated when France's Michelin Group reached an agreement to take over Uniroyal Goodrich for $1.5 billion. The deal leaves Goodyear the last major U.S. contender.

Uniroyal Goodrich, which was formed by the merger of Uniroyal and B.F. Goodrich in 1986, sees the deal as vital to its long-term survival. In a business in which size has become synonymous with strength, Uniroyal Goodrich is looking to Michelin for financial might and technical know-how. If the merger is completed, the new company (combined 1988 sales: $10.9 billion) may well surpass Goodyear ($10.8 billion) as the world's largest tiremaker.