Release date- 01102015 - AKRON, Ohio - The Goodyear Tire & Rubber Company announced today that it has dissolved its global alliance with Sumitomo Rubber Industries, Ltd. The terms and conditions of the transaction are consistent with those outlined by Goodyear when the agreement was announced on June 4, 2015.
'This successful resolution enhances our flexibility to grow profitably as we focus on delivering strong performance and sustainable economic value,' said Goodyear Chairman, Chief Executive Officer and President Richard J. Kramer. 'Despite current challenges in the global economy, the long-term growth prospects for the tire industry remain strong. This agreement paves the way for us to pursue our growth strategy and strengthen our presence in key global markets particularly where our technology leadership and the Goodyear brand provide us competitive advantage.'
The alliance, which was formed in 1999, primarily consisted of four joint venture operating companies, one each in North America and Europe, and two in Japan.
Under terms of the agreement, Goodyear retains exclusive rights to sell Dunlop-brand tires in the replacement market and to non-Japanese auto manufacturers in the United States, Canada and Mexico. Goodyear also retains exclusive rights to sell Dunlop-brand tires in replacement and original equipment markets in European countries where the former joint venture exclusively served the market. Additionally, Goodyear regains exclusive rights to serve Japanese markets with Goodyear-brand tires. The completion of the transaction will resolve the pending arbitration filed in January 2014.
As previously announced, the transaction does not impact the company's existing financial targets or capital allocation plan. The company will include the impact of the transaction in its full-year outlook beginning in February 2016.
Goodyear is one of the world's largest tire companies. It employs about 66,000 people and manufactures its products in 49 facilities in 22 countries around the world. Its two Innovation Centers in Akron, Ohio and Colmar-Berg, Luxembourg strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/corporate. GT-FN
Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential competitors; foreign currency translation and transaction risks; increases in the prices paid for raw materials and energy; a labor strike, work stoppage or other similar event; deteriorating economic conditions or an inability to access capital markets; work stoppages, financial difficulties or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
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