SRNA Discusses Plans for Dunlop

Sumitomo Rubber North America Inc. (SRNA) has big plans for the Dunlop brand, which its parent company, Sumitomo Rubber Industries Ltd. (SRI), acquired from Goodyear Tire & Rubber Co. 

Initiatives include new products and an associate dealer program that will encompass both Dunlop and Falken brand dealers, SRNA President and CEO Darren Thomas recently told MTD.

SRI has said it will “position Dunlop as our core brand and advance our brand strengthening activities as a joint effort between our tire and sports businesses,” focusing on new products “that incorporate our innovative Active Tread technology, OE tires for premium vehicles and motor sports.

"In addition, for the Falken brand — which has been deployed in Europe, North America and Oceania — we will utilize the product planning and marketing capabilities we have cultivated in each region to focus on bold, one-of-a kind products that appeal to its core fan base. Through a dual-brand approach to business development, we aim to increase sales volume in each region and raise the proportion of premium products.”

When discussing SRNA’s plans for Dunlop in North America, Thomas recently told MTD that “it would be a mistake to assume that the Dunlop distribution model will mirror the Falken distribution model. Our goal is to make sure that we share our strategies, although possibly controversial and unorthodox, with the marketplace.

"For North America, SRI has purchased blue sky and frankly speaking, SRNA would rather have a condition where we’re starting with a clean slate than starting with a line that’s obscure in the marketplace completely.

"We are in the middle of finalizing our product plans for all segments of Dunlop through 2030 and we are beginning phase two of our product strategy for Dunlop 10 our new associate dealer program is coordinated. These will be the types of products Dunlop needs to be a leader in the marketplace. The products we will introduce between 2026 and 2030 will be more value products to position Dunlop with distributors and retailers — passenger, light truck and TBR.

"This will be a two-phase strategy for us, simply because of the condition of the Dunlop brand in North America and the timeline it takes to develop products for North American sales.”

When asked how SRNA will position Dunlop in relation to Falken, Thomas said he “would encourage the marketplace to change their mindset about how we plan to position Falken in relation to Dunlop because they are non-competitive brands. The question is, ‘Who can Dunlop com pete with at retail or wholesale?’ Any educated retailer or wholesaler will recognize that existing brand recognition for Dunlop is still substantial, so the potential exists to sell Dunlop at premium price zones — for example (at the level of) Bridgestone, Continental and Goodyear.

"We believe in the first generation, the Dunlop brand will offer massive margin potential for retailers who are willing to sell Dunlop at a premium price. At wholesale, then it becomes a slightly different strategy, but not entirely different. Wholesal will be driven mostly by how our new associate dealer program is coordinated.

"We’re going to create a new associate Dunlop program that incorporates Dunlop, Falken, potentially Sumitomo and we may coordinate with distributors so their tier-four products of choice may qualify for this program,” which has yet to be named and will replace SRNA’s popular Falken Fanatic program, which has grown substantially over the past several years.

The fundamentals of the program “are in place,” said Thomas, and the program “may very well be inclusive of our TBR brands, also.”

In the meantime, SRNA will continue to develop new Falken brand tires in the light truck, all-weather and medium truck tire categories. These products “will not be affected whatsoever by the parallel development of new Dunlop products. People can count on the Falken brand to be available and heavily invested in, while we apply similar or increased efforts to Dunlop. The goal is not to reduce the emphasis on something that’s been successful. Our goal is to double down on what’s been successful, while making every investment and effort possible to ensure that Dunlop is successful.”

Goodyear gained control of the Dunlop brand in North America in February 1999, when it acquired 10% of SRI. In 2015, Goodyear reached an agreement with SRI to dissolve the global alliance between the two companies.

As part of the dissolution agreement, Goodyear retained exclusive rights to sell Dunlop-brand tires in both the consumer and commercial replacement markets of the United States, Canada and Mexico, as well as to non-Japanese vehicle manufacturers in those countries.

In 2023, as part of its Goodyear Forward plan, Goodyear announced that it was looking for a buyer for the Dunlop brand, as well as buyers for its OTR tire business and chemical division. Goodyear will continue to manufacture, sell and distribute Dunlop brand consumer tires in Europe through at least Dec. 31, 2025.