Goodyear North American Tire division president, Jon Rich, said his unit’s 2004 financial results would show its first annual profit in three years, according to a Tire Review report. Mr Rich made his comments at the company’s annual dealer meeting in Dallas. Aggressive cost cutting and high sales of Goodyear’s Assurance passenger tyre line led to the improvements in both sales and profits, he explained.
According to US media sources Continental’s decision to lock its Mayfield tyre plant has been finalised. Together workers and unions had undertaken a last attempt to divert Continental from resolving the situation through closure but their cost cutting suggestions to make the factory more competitive were to no avail.
DaimlerChrysler’s Mercedes unit has concluded negotiations with unions. The agreement between the two sides allows Mercedes to realise cost savings of 500 million euros that will take effect in 2006 and 2007, the company says.
In 1999, Nissan told its suppliers that they had to reduce prices if they wanted to keep the car manufacturer’s business. Since then Nissan has achieved a turnaround, achieving its 20 per cent cost cutting target a year earlier than planned. Despite this, Nissan has asked suppliers for a further 15 per cent cost cut and some have reacted angrily, pointing out that Nissan made a record net profit of $3.2 billion last year.
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