Goodyear, Sumitomo Announce Deal

February 03, 1999

SHARING TOOLS        | Print Subscribe
Goodyear, in a deal the Wall Street Journal says will make it No. 1 among world tire makers, announced a broad alliance with Japan’s Sumitomo Rubber Industries.

The complex deal effectively gives Goodyear control of Sumitomo’s U.S. and European operations, as well as a 10% stake in Sumitomo itself, which distributes the Dunlop brand. Goodyear and Sumitomo are putting many of their plants and marketing operations into joint ventures, with Goodyear owning the larger share of most of them.
The move shakes up the world tire business, which has been dominated for nearly a decade by Michelin and Bridgestone. According to Tire Business Magazine, Goodyear has a 17.1% market share, while Sumitomo has a 5.5% share. Goodyear will control about 22% of the global tire market, with a stronger No. 1 position in North American and a No. 2 position in the European market, according to the Wall Street Journal.
Joint ventures in North America and Europe will be owned 75% by Goodyear and 25% by Sumitomo. In Japan, SRI will own 75% of two joint ventures and Goodyear will own 25%. Voting rights will be shared 70/30.
The agreement is subject to approval by each company’s board of directors. The joint ventures are expected to be operational by Sept. 1.

Comment On This Story

Comment: (Maximum 2000 characters)  
Leave this field empty:
* Please note that every comment is moderated.


We offer e-newsletters that deliver targeted news and information for the entire fleet industry.


ELDs and Telematics

sponsored by
sponsor logo

Scott Sutarik from Geotab will answer your questions and challenges

View All

Sleeper Cab Power

Steve Carlson from Xantrex will answer your questions and challenges

View All