Goodyear: Committed to Philippines

(Akron/Tire Review) Despite circulating rumours, according to local media, Goodyear Tire & Rubber Co plans to maintain its operations in the Philippines, and hopes to reach a new deal on a 25-year property lease with the National Development Co there. According to news reports out of the Philippines, Goodyear Philippines president David Joseph Morin disclosed this at the company’s 50th year celebration this week and revealed plans to expand its network of Goodyear outlets in that country. The company’s 25-year lease contract with the National Development Co. for the 18-hectare lot in Las Piñas expired in May 2000 and has been extended month to month.

Pierre Cohade, president of Goodyear Asia Pacific Region, said the company’s Philippines operations are doing well and are cost competitive. “We have no reason to leave. We intend to stay here and we are proud of our legacy here and our service to our customers,” Cohade told local media.

He stressed, though, that it is in the interest of the government to have a balanced development and expressed hopes that “wisdom will prevail.” The Manila Bulletin noted that Cohade said that if the lease is too high this would discourage foreign investors. Reports said that negotiations have been going on for a couple of years with the government-owned NDC demanding that Goodyear increase its rental for this prime property. “It is in the interest of the Philippines to quickly settle this because this gives a wrong signal to investors that we are operating on shaky ground because we have no contract yet,” Cohade said.