Rubber Match

RUBBER MATCH

Dunlop’s parent company Sumitomo Rubber Industries has joined forces with tire-magnate Goodyear. The result is four shared ventures—one each in Europe and North America, and two in Japan, plus two U.S. support divisions that will tackle technology and global purchasing. According to Goodyear CEO/President Sam Gibara, “The new alliance returns Goodyear to its leadership position in the tire industry, strengthens its leadership in North America and provides a needed foothold in the important Japanese auto market. Sumitomo can expand sales volume and enhance Dunlop-brand quality and service. Improved cost efficiency, product performance and technical development will benefit Dunlop tires on a worldwide basis.” As part of the deal, Ohio-based Goodyear will pay the Japanese rubber lord $936 million. Goodyear’s consolidated annual sales are expected to jump by $2.5 billion, or 20 percent. According to a company spokesman, it’s too early to say whether Goodyear will return to the motorcycle-tire market.