The Goodyear Tire & Rubber Company announced today that it has dissolved its global alliance with Sumitomo Rubber Industries, Ltd. The terms and conditions of the transaction are consistent with those outlined by Goodyear when the agreement was announced on June 4, 2015.

"This successful resolution enhances our flexibility to grow profitably as we focus on delivering strong performance and sustainable economic value," said Goodyear Chairman, Chief Executive Officer, and President Richard J. Kramer. "Despite current challenges in the global economy, the long-term growth prospects for the tire industry remain strong. This agreement paves the way for us to pursue our growth strategy and strengthen our presence in key global markets particularly where our technology leadership and the Goodyear brand provide us competitive advantage."

The alliance, which was formed in 1999, primarily consisted of four joint venture operating companies, one each in North America and Europe, and two in Japan, according to Goodyear.

Under terms of the agreement, Goodyear said it retains exclusive rights to sell Dunlop-brand tires in the replacement market and to non-Japanese auto manufacturers in the United States, Canada and Mexico. Goodyear also retains exclusive rights to sell Dunlop-brand tires in replacement and original equipment markets in European countries where the former joint venture exclusively served the market. Additionally, Goodyear regains exclusive rights to serve Japanese markets with Goodyear-brand tires. The completion of the transaction will resolve the pending arbitration filed in January 2014.

As previously announced, the transaction does not impact the company's existing financial targets or capital allocation plan. The company said it will include the impact of the transaction in its full-year outlook beginning in February 2016.