- English
Goodyear Tire & Rubber Co has announced that it will sell its Dunlop brand to Sumitomo Rubber Industries (SRI). The sale will be made for $701 million in cash.
According to Goodyear officials, the sale of the Dunlop brand follows a strategic review. This is related to the company’s „Goodyear Forward” transformation plan.
„This is another important milestone as we continue to execute our ‘Goodyear Forward’ transformation plan. We optimize our portfolio and reduce indebtedness. The aim is to stimulate the creation of sustainable and substantial shareholder value. „Our team has carried out a comprehensive process, focused on maximising value for Goodyear through a divestiture of our Dunlop brand. We are committed to working closely with SRI to ensure a smooth transition for Dunlop brand customers.”
Goodyear sells Dunlop brand to Sumitomo
According to the contract between Goodyear and Sumitomo, the sale covers the Dunlop brand in Europe, North America and Oceania. However, Goodyear will continue to sell Dunlop-branded tires for passenger cars in Europe until at least December 31, 2025. It will pay a royalty to Sumitomo Rubber. Goodyear will then continue to supply certain Dunlop-branded tyres to Sumitomo in Europe for five years.
Goodyear announced in 2023 its plan to reduce the costs involved and reduce the brand portfolio. The goal is to achieve gross receipts of more than two billion dollars.
Sales of passenger car tires under the Dunlop brand totaled $532 million in 2023. Commercial tires were $201 million. Specialized tires (excluding motorcycles) reached $22 million. Goodyear will retain the rights to Dunlop’s trademarks for its motorcycle tire business in Europe and Oceania.
