Retail

Goodyear-Sumitomo alliance: Is the end near?

Posted on February 13, 2014

It looks like the alliance between Goodyear Tire & Rubber Co. and Sumitomo Rubber Industries Ltd. is in danger of dissolving.

During Goodyear's Feb. 13, 2014, investor conference call, held following the release of its 2013 financial results, Laura Thompson, executive vice president and chief financial officer, had this to say about media reports on the topic.

"Many of you who have followed us for a long time have seen our exposure related to our relationship with Sumitomo. We have a global alliance with Sumitomo Rubber Industries, or SRI, and we’ve had that since 1999. Among other agreements, many other agreements, we own 75% and SOI owns 25% of two companies, Goodyear Dunlop Tire Europe and Goodyear Dunlop Tire North America.

"We have learned that SOI has engaged in anticompetitive conduct in violation of applicable antitrust law. We concluded that warrants the dissolution of this global alliance, and on Jan. 10 of this year, we began arbitration proceedings seeking the dissolution of that global alliance."

As part of the proceedings, Goodyear also is seeking damages.

"We don’t believe the dissolution will have any material adverse impact on our customers, our operations or our liquidity, but as you know, arbitration proceedings are to be kept confidential," she said. "So you’ll see what I said and a little more in our 10K that comes out, but we really can’t comment on anything more than that."

On Sumitomo's website, the company would only say that it was aware of the arbitration petition to dissove the joint venture and alliance agreement. The petition was filed with the International Chamber of Commerce on Jan. 10, 2014.

Under the alliance, Goodyear controls the Dunlop brand in the United States, Canada and Europe.

Related Topics: Arbitration, Goodyear financials, joint venture, Laura Thompson

Comments ( 0 )
More Stories
News

Simple Tire Adds Another Delivery Option for Online Tire Buyers

Simple Tire LLC has added a third delivery option for customers of its online sales platform. They can ship their tires to any of the 1,800 FedEx Office locations in the U.S. But Simple Tire’s real goal is to redirect those customers to one of its installation partners.  

News

Pep Boys Expands in New York and New Jersey

Pep Boys — Manny, Moe & Jack, a wholly-owned subsidiary of Icahn Automotive Group LLC, has acquired an automotive and tire center in New York, and opened a new Pep Boys Service & Tire Center in Bordentown, N.J.  

The tall ceilings of Jeff Hall's Gardiners Road store give it a modern look and feel.
News

The Secret to Success for Midas in Canada: Tires

The owner of the two busiest Midas locations in Canada says offering an extensive tire inventory and more than a dozen tire brands has transformed his business. Consider Jeff Hall’s success a sign of what’s to come at Midas stores across North America.  

News

Six Hankook Tire Dealers Will Host Events for Veterans

Six tire dealers will help Hankook Tire America Corp. continue its partnership with the Disabled American Veterans (DAV) organization. Those dealers will host the group's Mobile Service Offices (MSO) at their stores so the DAV can reach out to veterans in those communities.  

Joe Venezia will lead Bridgestone's retail efforts at its 2,200-plus company-owned stores.
News

Bridgestone Retail Stores Have a New Leader

The 2,200-plus retail stores owned and operated by Bridgestone Americas Inc. have a new leader. Joe Venezia is the president of Bridgestone Retail Operations LLC (BSRO) effective June 19, 2017.  

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!