"Major changes in the tire industry: Sumitomo Rubber buys back Dunlop for $700 million"
After 10 years, Dunlop's European operating rights have returned to Sumitomo Rubber. On January 8, 2025, Sumitomo Rubber announced that it had signed a purchase agreement to acquire the Dunlop trademark and other rights of the Dunlop brand in Europe, North America and Oceania from Goodyear Tire & Rubber Company for $526 million (RMB 3.856 billion).
This also means that after Sumitomo Rubber obtains the trademark rights, except for certain regions and products (four-wheel tires do not include India, Malaysia, Singapore and Brunei; motorcycle tires do not include India, Europe and Oceania), Sumitomo Rubber will be able to operate Dunlop's tire business worldwide.
Dunlop returns to Sumitomo Rubber after 10 years
At the end of 2023, Goodyear announced its "Goodyear Forward" plan to divest its Dunlop business in Europe. In the following year, the industry has been paying attention to the dynamics of this matter. Although Sumitomo Rubber said in a conference call with investors that it was interested in acquiring Goodyear's Dunlop tire brand sales and operation rights in Europe and North America.
But there has been no movement since then. In addition, the closure of the US factory was announced at the end of the year, so the speculation that Sumitomo Rubber would buy back Dunlop almost disappeared. But at the beginning of 2025, Dunlop directly "exploded"-signed a purchase agreement. After 10 years, Sumitomo Rubber finally bought back Dunlop's "global business".
Alliance, rupture and Dunlop
The reasons for Dunlop's departure from Sumitomo Rubber can be traced back to 1999.
In 1999, in order to better utilize their respective advantages to develop the tire business, Goodyear and Sumitomo Rubber announced an alliance. Goodyear acquired 75% of Sumitomo Rubber's tire business (including manufacturing and sales) in North America and Europe. This also means that Goodyear is responsible for the operation of selling Dunlop brand tires in the European and North American markets.
On June 4, 2015, the alliance, which had been in existence for 16 years, announced its dissolution. According to the dissolution agreement at the time, Goodyear will acquire Sumitomo's 25% stake in Goodyear Dunlop Tire Europe (GDTE); Goodyear will still have the exclusive agency rights for the Dunlop brand in the European market after June 4, 2015;
However, the exclusive agency rights for Dunlop brand tires in Russia, Turkey and some African countries still belong to Sumitomo Rubber.
The global tire manufacturing and sales of the Dunlop brand have been operated by two tire companies for more than 20 years. Now, with the purchase agreement taking effect, the global tire business of the Dunlop brand belongs to Sumitomo Rubber.
Sumitomo Rubber plans Dunlop
After repurchasing the Dunlop trademark and other rights of the Dunlop brand in Europe, North America and Oceania, Sumitomo Rubber will continue to position Dunlop brand tires as a high-end tire brand in the global market.
Sumitomo Rubber said that by leveraging Sumitomo's rich tradition and strong brand awareness, Dunlop Tire will integrate Sumitomo Rubber's cutting-edge technology to meet the diverse needs of mobile travel. Specifically, in the future, Dunlop Tire will adopt Sumitomo Rubber's innovative "active tread" technology (a new technology in which the performance of rubber will actively change with changes in humidity and temperature to adapt to road conditions) and focus its business on the development and sales of high-end automotive accessories and racing sports products.
In addition, for the Falken brand that has been deployed in Europe, North America and Oceania, Sumitomo Rubber will use its product planning and marketing capabilities cultivated in each region to focus on creating unique products for its core customer groups. Sumitomo Rubber will increase sales in each region of the world through a dual-brand business development strategy, while increasing the sales proportion of high-value tires of 28 inches and above.
In addition, Sumitomo Rubber will position Dunlop as its core brand and further promote brand strengthening activities in the future. By accelerating brand investment in racing sports and global marketing of tennis events, the value of the Dunlop brand will be increased globally and developed into the preferred brand of customers.
"Looking ahead, we will maximize the potential of the Dunlop brand in both existing regions and new regions where Sumitomo Rubber has acquired rights, further accelerating the achievement of our goal - that through innovation, we will create a future of joy and happiness for all," said Satoshi Yamamoto, president and CEO of Sumitomo Rubber.
