T&WA and EnovaPremier have not disclosed the terms of the transaction.
Goodyear anticipates recording an after-tax, non-cash loss of $30 million to $35 million in the fourth quarter of 2007 as a result of the transaction, subject to post-closing adjustments.
The company said T&WA’s exit from the tire and wheel assembly business is consistent with Goodyear’s previously announced strategy to focus on its core consumer and commercial tire businesses. T&WA is a variable interest entity that is consolidated with Goodyear under generally accepted accounting principles.
T&WA, a minority business enterprise that was founded in 1995, supplies mounted and balanced tire and wheel assemblies to auto manufacturers. The business operates facilities in Alabama, Indiana, Kentucky and Michigan. (Tire Review/Akron)