Goodyear Tire & Rubber Company has agreed to sell its Dunlop brand rights in Europe, North America, and Oceania to Sumitomo Rubber Industries (SRI) for approximately $701 million. This transaction is a significant part of Goodyear’s ongoing effort to streamline its operations and optimize its business portfolio under its transformation plan, known as Goodyear Forward. The deal highlights Goodyear's continued focus on cutting costs and driving sustainable growth.

The sale involves $526 million for the Dunlop brand and associated intellectual property, $105 million for a transition fee, and an estimated $70 million for existing Dunlop tire inventory. The deal is expected to close by mid-2025, pending regulatory approvals, marking a major shift in the global tire industry. Goodyear’s CEO and President, Mark Stewart, stated that the sale aligns with the company’s efforts to reduce leverage and improve shareholder value. He emphasized, “This is another important milestone in executing our Goodyear Forward transformation plan, allowing us to better focus on the growth of our core brands.”

Despite selling the rights to the Dunlop consumer tire business, Goodyear will continue manufacturing and selling Dunlop consumer tires in Europe until at least December 2025, with the possibility of extending the arrangement through 2026. After the transition period, Goodyear will supply Dunlop-branded tires to SRI in Europe for five years, with a minimum commitment of 4.5 million tires annually. This allows Goodyear to maintain its involvement in the Dunlop brand while transitioning the broader consumer tire operations to SRI.

Furthermore, Goodyear will retain the rights to the Dunlop trademark for its motorcycle tires in Europe and Oceania, as well as maintain a licensed right to produce Dunlop commercial truck tires in Europe. This means that while Goodyear is divesting its consumer tire operations, it will still have a role in other specialized tire markets.

In 2023, Dunlop’s consumer tire sales amounted to $532 million, with commercial tire sales generating $201 million. Although the sale is expected to have minimal impact on Goodyear’s operating income during the transition period, the company anticipates a potential reduction of approximately $65 million in annual operating income once the supply agreement phase begins.

This move is a significant step in Goodyear's strategy to focus on its core brands and strengthen its financial position. For Sumitomo Rubber Industries, acquiring the Dunlop rights enhances its control over a well-known global brand in key tire markets, making this deal a pivotal development in the global tire industry.