Goodyear Extends Dunlop Tire Supply Agreement with Sumitomo for Five Years

Goodyear Tire & Rubber Co announced its decision to sell the Dunlop brand to Japan's Sumitomo Rubber Industries for $701 million in cash as part of a plan to streamline its operations. For five years, Goodyear will continue providing Sumitomo with exact Dunlop-branded tires in Europe.

The company stated that the sale encompasses the Dunlop brand and its trademarks across Europe, North America, and Oceania. Goodyear announced it will keep selling Dunlop-branded passenger car tires in Europe until at least December 31 this year, while paying a royalty to Sumitomo Rubber.

The tire company announced that it would license Dunlop's trademarks for truck tires in Europe back on a long-term basis and pay the Japanese firm royalties on sales.

In 2023, Goodyear disclosed plans to decrease costs and reorganize its business portfolio, which encompasses the Dunlop brand as well as its Off-the-Road and chemicals divisions, aiming at the objective of creating over $2 billion in gross proceeds.

As part of the same cost-reduction initiative, the tire company divested its Off-the-Road equipment tire business to Japan's Yokohama Rubber for $905 million in cash last year. In recent years, tire manufacturers have faced pressure from lower-cost competitors from China and are under regulatory inspection regarding pollution concerns.