Kyodo News reported today that Goodyear Tire & Rubber Co. and Sumitomo Rubber Industries are ending their 15-year alliance and associated joint ventures.
This impacts their business relationship and tire business in Europe, Japan and the U.S. There is no specific word as to how this will impact Goodyear’s marketing of Sumitomo’s Dunlop brand in North America and elsewhere.
The Kyodo News report said SRI “has been required” by Goodyear “to dissolve their alliance in the tire business in Japan, the United States and Europe apparently as the main arena for tire sales has moved to emerging economies.”
“We are ready to negotiate for the dissolution of the alliance if Goodyear strongly hopes so,” SRI President Ikuji Ikeda said at a press conference in Tokyo, according to the report.
Under the alliance, which began in September 1999, Goodyear gained control of SRI’s Dunlop tire operations in Europe and North America, and SRI held a 75% stake in another joint venture for tire sales in Japan.
Goodyear has also been calling for dissolving their joint ventures, according to Sumitomo Rubber.