Founded in 1898 by Frank Seiberling, The Goodyear Tire & Rubber Company is an American multinational tyre manufacturing company based in Akron, Ohio. It is one of the oldest, biggest and best-known tyremakers in the world. Goodyear makes tyres for automobiles, commercial trucks, light trucks, motorcycles, SUVs, racing cars, aeroplanes, farm equipment and heavy earth-mover machinery. Find all the news and analysis you need relating to Goodyear here.
The Corporate Design Foundation has named the Goodyear blimps a “business and design classic”; an accolade bestowed in the past on such well-known icons as the paper clip and the Coca-Cola bottle. Every year in the USA, the Goodyear blimp is seen live by 60 million people at sporting events, and by millions more on TV.
In order to expand its approach to marketing Michelin North America is reviewing its US advertising policy and will be evaluating new agencies after a 17 year relationship with New York agency DBB. At the same time Goodyear are set to increase world-wide advertising spend by 30 per cent. The annual advertising spend for Goodyear is estimated to be $60m.
That the heavy truck tyre business is changing dramatically at all levels cannot be denied. Tyre dealers doing this business almost as a sideline in their local markets are facing a decrease but they are not too sad about this development because it is becoming harder and harder to earn money with truck tyres. This sector of business is decreasing because, for hauliers and their fleets, an enormous process of consolidation is taking place. In the future we will have tyre dealers saying good-bye to the truck tyre business and tyre dealers being strong in car and truck tyres. The media predict that goods traffic will increase significantly in coming years. Tranportation by waterway, railroad and especially road haulage will grow. But that might be a scenario for the longer term, because now we can read predictions of lower new truck registrations of about ten percent this year, and also next, in most European countries. But the stock lists seem to be stable because hauliers use their trucks longer (although they would prefer to buy a new one but it is too expensive) and modern trucks have a greater life expectancy than previously. The truck market is undergoing a process of structural changes. Mega fleets have arisen, absorbing a lot of the medium-sized and small hauliers. For the big fleets the four premium tyre brands Michelin, Continental, Bridgestone and Goodyear dominate. Their second brands are cheaper but good quality nevertheless. At the budget tyre level, brands like Toyo, Hankook or Marshal compete with the third brands of the four big market players for 15 percent of the market.
Goodyear’s BioTRED tyre which uses corn starch filler instead of carbon black or silica, is to be offered as an OE fitting on the Ford Fiesta. The BioTRED tyre is manufactured at seven European locations and is the first tyre to be manufactured with a renewable sourced filler.
Press reports say that 800 workers at the tyre factory at Debica in Poland will be laid off by the end of 2001. This represents almost 19% of the total workforce of 4,218 and the move is part of restructuring plans. The Debica factory is controlled by Goodyear.
Ron Wells has been named as Vice President of Business Development for RubberNetwork.com. Wells has over 22 years’ experience with the Goodyear Tire & Rubber Company, having successfully implemented brand development programs on a global level and with experience in purchasing and marketing management.
Goodyear vice-president of global communications, John Perduyn, is to retire at 62 at the end of this year. The company has engaged Korn/Ferry International to search for a replacement spokesman. Internal candidates will be considered for the post which handles a wide range of tasks, from advising senior executives on how to communicate their messages to operating the Goodyear Blimp, not forgetting dealing with the media.
The Kelly brand is to be relaunched at the Tyrexpo Europe exhibition in the UK in March. Director of Kelly Europe, Chris Kisby, says that the relaunch will give Kelly a powerful presence in the ‘price shopper’ market segment and a clearer identity in relation to the other group brands, Goodyear and Fulda. New products to extend the range will also be introduced at the show.
Goodyear Dunlop Tires Europe has announced the appointment of three managing directors for France, Germany and the UK. Sylvain Valensi will head up France, Gerd Grünenwald takes control in Germany and Marco Molinari returns to the UK for his second stint as MD. Goodyear GB’s current MD – Steve MacDonald – will retire after 27 years with the company.
Goodyear’s EMT (Extended Mobility Technology) tyres are the most popular run-flat tyres sold as original equipment. For next year, Goodyear is expecting new record sales of one million EMT tyres to car manufacturers.
Every year, Canadian automotive journalists carry out a series of driving tests, after which they name their “car of the year” in various categories. In the 2001 awards, 10 out of 15 car and truck category winners were fitted with Goodyear tyres. Wayne Barnes, president and CEO of Goodyear Canada, said that the results underline the way the company works closely with OEMs to achieve better vehicle performance.
Goodyear has released details of its financial performance for the last quarter of 2000 and for the year as a whole. Sales for 2000 were a record $14.4 bn (1999: $13.4 bn), of which Dunlop contributed $2.3 bn. Goodyear estimates that currency factors reduced sales by $450 m. Net income was sharply down to $40.3 m (1999: $243.2 m). The number of tyres produced in 2000 rose by 22.8 million units to 223.3 m tyres, of which Dunlop shipped 37.3 m units. Samir Gibara, chairman and chief executive officer, described the results as “disappointing”, adding: “We have solid improvement plans in place for 2001.” Gibara went on to say that global rationalisation initiatives will reduce group employment worldwide by 7,200 and save $150 m this year, and $250 m annually thereafter.
Truck Racing at Nürburgring is traditionally a highlight of the racing season in Race- and Super Race-series for big trucks. Once again, 200,000 visitors came to see the competitions combined with a big entertainment programme. The smell of diesel and rubber, lots of sausages and beer, country music and a little bit of Western romance – these are the basic ingredients of this three-day-long fun and sports event. The important tyre manufacturers like Goodyear, Fulda and Pirelli were there too and used this occasion to communicate with their customers in an atmosphere much more relaxed than normal. The only tyre supplier for Truck Racing, Continental, had invited almost 2,000 guests for the races. For twelve years the German tyre manufacturer has supported European truck sport. And the involvement means more than just supplying the tyres. Technical support on the race tracks, mounting and professional advice are also part of the programme of sponsoring different teams. Since 1991 all teams of the Super Race-class have driven exclusively on Continental. With up to three trucks weighing 30 tons, the Continental service team accompanies the competitions all over Europe. Two service vehicles have space for 200 truck tyres each – enough to satisfy the needs of all the teams for a complete race weekend. Besides the enthusiasm for motor-sports Continental’s involvement has other practical reasons. Firstly, all target groups from the original equipment sector to the end user can be reached. And secondly, the racing itself provides concrete proof of the high performance and resistance of Continental’s truck tyres.
Goodyear Tire & Rubber has announced worldwide sales in the 3rd quarter of $3.7 bn (Q3 2000 = $3.6 bn). Net income for the same period was $9.3 million, compared to $17 m for Q3 last year. For the first nine months of the year, the company posted a net loss of $29.6 m, compared to net income of $142.3 m for the equivalent period in 2000. Sam Gibara spoke of “a general economic slowdown” and “tough market conditions in many regions.” However, one plus point for the company was a market share gain of 3 per cent in the US replacement tyre market.
According to the US tyre manufacturer Goodyear, they have developed a filling material for car tyres on the basis of renewable raw materials. Thanks to this new rubber mixture, as reported by the press officer Mr Fischer, tyre production will be less harmful to the environment and, compared to the normal silica tyre tread mixture, it offers a lower rolling resistance. Above all, it should be fuel saving. This new technology, which will be used for the first time in the summer tyre GT 3, will offer additional advantages for safety and handling. Presenting the BioTred for the first time to the German press at the end of January in Frankfurt, the company attracted a lot of interest. BioTred is an artificial name, with a deliberate spelling difference to “tread”, in order to highlight its ecological advantage immediately to the consumer. BioTred is a patented tread mixture containing an element from corn starch. However, in parts this element will replace the substances soot and silica which have been used for processing up to now. According to Dr. Annette Lechtenböhmer, who is a chemical engineer at the Goodyear Technical Centre in Luxembourg and also a university teacher at the Hanover University Institute for Process Engineering, this new filling material will reduce CO2 emissions in different ways. On questioning it was confirmed that the starch suitable for producing the filling material could also be generated from potatoes. Since Goodyear has spent five years developing this material and holds a couple of patents, a lead over the competition should be possible.
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