GOODYEAR Tire & Rubber said on Tuesday (Jan 7) that it will sell its Dunlop brand to Japan’s Sumitomo Rubber Industries for US$701 million in cash as part of a plan to streamline its business.
The sale covers the Dunlop brand and its trademarks in Europe, North America and Oceania, the company said.
Goodyear said it will continue to sell Dunlop-branded tyres for passenger cars in Europe through at least Dec 31 this year and will pay a royalty to Sumitomo Rubber.
Goodyear will then continue to supply certain Dunlop-branded tyres to Sumitomo in Europe for five years.
The tyre company said it will also license back Dunlop trademarks for truck tyres in Europe on a long-term basis and will pay the Japanese firm royalty on sales.
In 2023, Goodyear announced plans to cut costs and trim its portfolio of businesses, including its Dunlop brand and its Off-the-Road and chemicals units, aimed at delivering more than US$2 billion in gross proceeds.
The tyre company sold its Off-the-Road equipment tyre business to Japan’s Yokohama Rubber for US$905 million in cash last year as part of the same cost-cutting drive.
Tyre manufacturers have come under pressure over the past few years from cheaper Chinese rivals and face scrutiny from regulators on concerns of pollution. REUTERS
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