After many years of disagreements in a joint venture, the 136-year-old tire company Dunlop has sold Japan's Sumitomo Rubber. The deal is worth DKK 5 billion.
After a long period of disagreement, the tire brand Dunlop has been sold to the Japanese company Sumitomo Rubber Industries.
Goodyear, which previously owned Dunlop, has reached an agreement to sell the brand for $701 million. The sale includes Dunlop's brands in Europe, North America and Oceania.
Reuters writes.
The agreement does not mean a complete farewell to Dunlop for Goodyear, however. The company will continue to sell Dunlop tires for passenger cars in Europe until at least December 31, 2025. During that period, a license for the use of the name will be paid to Sumitomo Rubber.
In addition, Goodyear will supply Dunlop tires to Sumitomo in Europe for the next five years.
Goodyear has also secured the rights to use the Dunlop trademark for truck tires in Europe in the long term. Here too, a license fee per tire will be charged.
The sale of Dunlop is part of Goodyear's strategy to streamline the business and reduce costs.
In 2023, Goodyear announced plans to significantly reduce its business areas, including the sale of Dunlop, Off-the-Road and the chemicals division. The goal was to raise more than $2 billion (equivalent to just under 14.5 billion Danish kroner) in divestments.
As part of the weight loss program, Goodyear sold its Off-the-Road tire business to Japanese company Yokohama Rubber for $905 million last year.
Tire manufacturers have experienced increased pressure from cheaper Chinese competitors in recent years and are facing increasing demands from authorities to reduce pollution.
Among other things, the EU has made particle pollution from tires part of the otherwise dilutive Euro 7 standard for passenger cars. Read more about it here .
