Goodyear is in no hurry to sell the Dunlop brand
In 2023, the American Goodyear announced that as part of its restructuring program Goodyear Forward, aimed at optimizing costs, it intends to sell the rights to the Dunlop brand and the production of chemical products, however, as recently stated to the publication Tire Business during the SEMA 2024 exhibition by the company's CEO and President Mark Stewart, there are no plans to urgently get rid of assets. Additionally, the Dunlop brand, whose history dates back to the late 1880s, has actually increased its share of the European market, the demand for which, according to Stewart, is "either stagnant or declining".
"We are very pleased with the results of Dunlop, and we will not rush to sell this asset," he said. "If we are not offered a suitable amount, it will remain with us. So, we'll just see what offers we get. This process is already underway, but we haven't made any decisions yet".
The head of Goodyear also said that the company sells around 5 million Dunlop tires in Europe every year and "much less here, in America". Not so long ago, Goodyear moved Dunlop to the mid-range segment on the European market, placing it between its main premium brand and such brands as Avon, Fulda, and Sava.
"Dunlop is a truly legendary brand, and in this sense, it is similar to Goodyear on the American market or Mickey Thompson, which has a rich heritage in motorsports," he noted. "The strength of this brand is evident, and it has many fans not only in Britain but throughout Europe, and it has really shown itself well in Germany".
Stewart also has personal connections to the brand, as his father, who passed away five years ago, worked at the Dunlop factory for 42 years. "I knew about Banbury [a type of rubber mixer], and my mom would yell at my dad every day to take off his boots and wash off that soot," he says.
In 2015, the alliance with Sumitomo was terminated, after which Goodyear received the rights to the Dunlop brand in North America and Europe, and the Japanese company received the rights in Asia and Russia, as well as in South America.
Stewart also spoke about the status of three relatively new brands in Goodyear's portfolio: Cooper, Mickey Thompson, and Mastercraft, all of which were acquired during the purchase of Cooper Tire in 2021 for $2.8 billion. According to him, they will be an "integral part" of Goodyear's range in the future, primarily Cooper, which has a "dedicated fan base" among both dealers and car owners.
"Cooper managed capital, the money they spent, very well, although they very, very inefficiently thought out the strategy for launching products on the market. At the same time, there are a huge number of people who value this brand," Stewart noted, adding that one of the drawbacks of Cooper's approach was the lack of advertising and marketing initiatives, and now the situation has been corrected.
"For me, it was important that we develop relationships with distributors loyal to the Cooper brand, and we are very pleased with the results," he said, also noting that a dog named Cooper has appeared in Cooper's advertising, and that was also the name of his own dog.
Goodyear will continue to develop its Mickey Thompson and Mastercraft brands, and Stewart stated that "now we are studying the entire product portfolio for gaps", as it is necessary to cover all the needs of car owners.