Goodyear cuts ownership in Sumitomo

AKRON (April 9)—Goodyear has sold the majority of its 10-percent holding in Japanese tire maker Sumitomo Rubber Industries Ltd. for about $83.4 million. The sale was made to improve Goodyear's financial flexibility and most of the proceeds will be used to reduce debt, the company said. Sumitomo purchased 20.33 million shares of the 20.83 million shares Goodyear sold, reducing the Akron-based tire manufacturer's stake in Sumitomo to 1.5 percent. Despite the sale, Robert J. Keegan, Goodyear president and CEO, said the firm's "alliance and partnership with Sumitomo remains strong. Our joint ventures are successful." The companies have six joint ventures, including tire manufacturing and sales operations in North America and Europe.