“While we are committed to manufacturing in North America, all of our plants must be cost competitive and be able to demonstrate sustainable world-class productivity,” says Richard J. Kramer, chairman and CEO. “That is not the case with this plant, and as a result, the market has moved beyond what the factory is able to build.”
The shutdown, when complete, will eliminate about 12 million units of available capacity and is the final action in plans announced in 2009 to cut 15 million to 25 million units of high-cost global capacity.
Employing some 1,900 workers; the closure will save Goodyear about $80 million per year.
The company does expect the global tire industry to continue to grow in 2011, with volume expansion across all regions and major segments, according to Kramer.
In North America, the consumer tire replacement industry is expected to grow between 1 percent and 3 percent, consumer original equipment between 5 percent and 10 percent, commercial replacement between 3 percent and 8 percent and commercial original equipment between 20 percent and 30 percent.
The company’s fourth quarter 2010 net loss was $177 million (73 cents per share), compared with net income of $107 million (44 cents per share) in the fourth quarter of 2009.
“The percentage of new products in our overall lineup is the highest ever and is driving record revenue per tire increases and continued success in targeted markets,” he adds.
“Our selective approach to the business continues to present strong profit growth opportunities. Goodyear’s leading brands and technology offer customers in targeted segments with an outstanding value proposition,” Kramer says.
For more information, visit www.goodyear.com
