Last summer, after returning from Japan, I wrote an article on the history of the famous collaboration between Sumitomo and Dunlop. Since its beginnings centuries ago as a copper-industry powerhouse, Sumitomo has carved out a place for itself in many spheres of the economy, and the tire world is no exception. Since 1906, its Sumitomo Rubber Industries division has been working with another legendary brand, Dunlop. Initially responsible for the distribution and development of Dunlop tires for the Asian market, Sumitomo even launched its own brand, Falken, during the 1980s.
However, it seems that 2025 will mark a milestone in the collaboration between the Japanese giant and Dunlop, as Goodyear, the British brand's parent company, has announced the sale of Dunlop's assets to Sumitomo. If nothing changes between now and the end of the transaction, the Japanese company will receive a rather hefty bill of US$701 million. According to the two manufacturers, this exchange is simply the logical continuation of a relationship that has lasted for over 100 years. But how will the market react to this new shock?
Sumitomo and Dunlop: a love story
I've already mentioned the long history between Sumitomo and Dunlop, but in the early 2000s the future was still uncertain. After helping the British brand recover from a long period of financial difficulties, Sumitomo sold Dunlop to Goodyear between 1999 and 2003. Dunlop tires have now been sold alongside the Ohio-based giant's other brands for over 25 years.
Why such a sudden turnaround? According to Goodyear, the sale fits perfectly with its vision of maximizing its assets. With a view to optimizing its portfolio and reducing its debt, Goodyear has decided to divest one of its slowest-growing brands. Sumitomo, on the other hand, welcomes this new brand with open arms, which should enable it to increase its market share worldwide.
What can we expect?
For the moment, the news remains rather fresh. Neither company has yet dared to announce any changes to its product range, or even its business strategy. However, I think there's a good chance we'll see a renewed Dunlop range, more along the lines of Japanese-style tires than good old-fashioned Goodyear tubes. In my opinion, we can expect a certain unification of the range, which could one day resemble more what we currently find on the Asian market. Only time will tell!