The global alliance primarily consists of four joint venture operating companies, one each in North America and Europe, and two in Japan. „While we have derived value from the alliance over the last 16 years, Goodyear is well positioned today to pursue our strategy on our own,“ said Goodyear Chairman and Chief Executive Officer Richard J. Kramer. „This successful resolution increases our flexibility to grow profitably as we continue to focus on delivering strong performance and sustainable economic value.“ Kramer concluded, „We are committed to a smooth and orderly transition that will be seamless to our customers and consumers in North America, Europe and Japan.“
Concerning the European joint venture, Goodyear (currently 75 percent interest) will acquire SRI‘s 25 percent interest in Goodyear Dunlop Tires Europe B.V. (GDTE). Furthermore will Goodyear retain exclusive rights to sell Dunlop-brand tires in both replacement and original equipment consumer, commercial, motorcycle and racing markets in European countries where the current joint venture exclusively serves the market. SRI will obtain exclusive rights to sell Dunlop-brand tires in certain countries that were previously non-exclusive under the global alliance, including Russia, Turkey and certain countries in Africa.
The agreement announced, when closed, would resolve the pending arbitration filed in January 2014. The agreement enables both companies to avoid the cost and uncertainty of the arbitration process.
Weblink to an overview of agreement
On Goodyear‘s homepage is provided an overview about the agreement and it‘s impact to the joint venture companies – please click here.
(dw)
