(Reuters) – Goodyear Tire and Rubber Co said on Tuesday it would sell its Dunlop brand to Japan's Sumitomo Rubber Industries for $701 million in cash as part of a plan to simplify its business.
The company said the sale covers the Dunlop brand and its brands in Europe, North America and Oceania.
Goodyear said it will continue to sell Dunlop-branded tires for passenger cars in Europe until at least December 31 of this year and will pay royalties to Sumitomo Rubber.
Goodyear will then continue to supply certain Dunlop-branded tires to Sumitomo in Europe for five years.
The tire company said it will also re-license Dunlop's truck tire brands in Europe on a long-term basis and pay the Japanese company royalties on sales.
In 2023, Goodyear announced plans to cut costs and shrink its business portfolio, including its Dunlop brand, off-road and chemicals units, with a goal of achieving total revenues of more than $2 billion.
The tire company sold its off-road equipment tire business to Japan's Yokohama Rubber Co. for $905 million in cash last year as part of the same cost-cutting drive.
Tire manufacturers have come under pressure over the past few years from cheaper Chinese competitors and have faced scrutiny from regulators over concerns about pollution.
