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
Article

You’ve Got Email: It’s Still the Way to Go to Market, Digitally Speaking

Remember email? Sometimes in the communication that is texting, tweeting or ‘Snapchatting,’ email is taken for granted. Facebook is great for sharing your thoughts and feelings to everyone you have friended, but email is more targeted, especially when used for business. You might say it is even more personal than Facebook because it is designed for interaction between two people or among a small group of people.

Drew Howlett from Falken says developing the right M/T tire is critical. “There are too many other competitive products on the market to have any weaknesses.”
Article

M/T Tires are Having a Moment: Consumer Demand Is Blurring the Lines

There are off-road warriors who never let their vehicles or mud-terrain tires touch pavement. There are others who like to occasionally play in the dirt, but need their fun vehicles to do double duty to go to work or school. And increasingly, there are drivers with lifted trucks and mean-looking tires who chase the aesthetic more than the lifestyle their vehicle portrays.

The sales staff at Ron's Tire & Motorsports is cross-trained to sell every product, from tires to bicycles to lawnmowers to barbecue grills.
News

Ron's Tire Sells Tires, And Much, Much More

Here’s the first hint that the newest tire store Ron Baxter and Ross Baxter are opening in Idaho Falls, Idaho, isn’t a typical retail store: the size. It’s 37,000 square feet.  

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!