Sumitomo will acquire Goodyear's 75-percent interest in Goodyear Dunlop Tires North America Ltd., including the venture's factory in Tonawanda, N.Y., along with rights to sell Dunlop-brand tires to Japanese vehicle makers' subsidiaries in the U.S., Canada and Mexico. It also assumes exclusive rights to the Dunlop-brand motorcycle tires in North America.
“While we have derived value from the alliance over the last 16 years, Goodyear is well positioned today to pursue our strategy on our own,” said Goodyear Chairman and CEO Richard Kramer in a prepared statement. “This successful resolution increases our flexibility to grow profitably as we continue to focus on delivering strong performance and sustainable economic value.
“We are committed to a smooth and orderly transition that will be seamless to our customers and consumers in North America, Europe and Japan.”
Goodyear said the transaction will not impact its 2015 and 2016 financial targets or capital allocation plan. The outlay is included in the approximately $600 million designated for restructurings under the capital allocation plan.