Gashi Automobile News According to Reuters, on July 22, Goodyear said that as part of streamlining its business, it would sell its off-highway (OTR) tire business to Yokohama Rubber Company of Japan for US$905 million in cash.
Goodyear last year announced plans to cut costs and streamline its business portfolio, including its chemicals division, its Dunlop brand and off-road tire division.
The strategic review aims to achieve a total revenue target of more than $2 billion.
According to reports, in January this year, at the urging of activist shareholder Elliott Investment Management L.P., Goodyear also appointed a former Stellantis executive as its next CEO.
Dunlop Tires.
Photo source: Goodyear, Goodyear’s Off-Highway Tires business unit produces tires for industries such as mining and construction.
Goodyear said in a statement that the transaction is expected to complete in early 2025.
, Goodyear said it expects to produce certain off-road tires for Yokohama Rubber at some of its manufacturing plants in the first five years after the transaction closes.
Yokohama Rubber said in a separate statement that with the acquisition, the company aims to strengthen its product portfolio and enhance its lineup of non-agricultural tires.
, Yokohama Rubber said it would acquire all shares of Nippon Giant Tire, Goodyear’s off-road tire manufacturing joint venture.
Japan Giant Tire operates an off-highway tire factory in Hyogo Prefecture, Japan, and produces Goodyear Earthmover in Australia, as well as other assets around the world.
Investment bank Evercore provided Goodyear with advisory services on the transaction.
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