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.
According to Shanghai based research company China Research and Intelligence (CRI), increased vehicle numbers are causing scrap tyre levels in China to grow at a rate of 10 to 20 per cent per annum. Last year, CRI reports, more than 200 million tyres in China reached the end of their useful lifespan, yet only 11.5 million were retreaded.
Respect is a much sought after commodity, as any fan of ‘The Godfather’ film trilogy can testify. Any company capable of earning and keeping the buying public’s respect holds a value tool no PR firm can replicate with slick campaigns. According to the Reputation Institute (RI) and Forbes magazine, Goodyear Tire and Rubber is one such firm – for the second year in a row it has been recognised as America’s most respected automotive company.
Goodyear Tire & Rubber Company has reported first quarter 2009 sales of $3.5 billion, down from record sales of $4.9 billion in first quarter of 2008. However, Goodyear only reported net losses of $333 million, compared with Goodyear net income of $147 million (60 cents per share) in the 2008 quarter. While obvious significant the losses certainly weren’t as bad as they could have been for two reasons. Firstly, they were, according to financial news sources, ahead of mainstream analysts’ opinions; and secondly because the total losses are roughly equal to the increases in raw material costs the company experienced in the first quarter ($332 million, up 31 per cent). The explanation for greatly reduced turnover was said to be the tyre market’s sharply reduced demand in at the start of 2009, however as various sources are predicting that the US market has bottomed-out and raw material prices are believed to have stabilised, Goodyear could be in for a better second quarter.
Goodyear Tire & Rubber was one of three companies whose stocks financial services firm JPMorgan added to its small and mid-cap money list on April 24. According to JPMorgan, Goodyear was added to the SMid Money list, as it is likely to benefit from a market rotation into cyclicals from defensives. Following the announcement shares in Goodyear surged 11 per cent to US$10.91.
Goodyear UK is to sponsor the Royal National Lifeboat Institution’s Flood Rescue Team, funding a raft of specialist training and equipment, synergistically linking the manufacturer’s emphasis on safety with its charity work. The RNLI’s Flood Rescue Team is a uniquely trained arm of the RNLI, able to operate worldwide to assist in rescues in flood hit areas. Having raised money for the charity in the past through tyre sales, Goodyear states that it is pleased to be taking the relationship a step further by supporting this vital service.
Goodyear UK brand manager Michelle Fisher said, “Through our previous fundraising for the RNLI we learned about the inland work carried out by the Flood Response Team, and the amazing help that they have given so many people in areas that you wouldn’t necessarily think could be affected by such dangers. There is great synergy between our organisations due to our own commitment to safety – our wet weather specialist tyres are designed to save people’s lives in wet conditions, RNLI volunteer crew members save people at sea around the coasts of UK and ROI every day.”
Goodyear and US based tyre retailer Big 10 Tire have been informed that they, rather than speed and alcohol, are accountable for a crash that killed one young man and injured two. The Mississippi Court of Appeals has upheld a US$2.1 million verdict against the two companies originally decided upon in autumn 2006.
Goodyear South Africa’s new managing director, Jean-Jacques Wiroth, has announced an R70-million (£5.4 million) investment in the company’s Uitenhage plant at the first major event he has hosted since taking up the post in early April. These funds are earmarked for the launch of new locally produced tyres – the Wrangler AT/SA for off-road use, the DuraGrip passenger car tyre, and the Duramax G22, developed specifically for the taxi market. These tyres will be exported to sub-Saharan Africa and Europe.
“We are investing not only in the Uitenhage plant to produce these products, via new machinery, new moulds and various continuous improvement projects, but also in our people and distribution channels through continuous training and development,” said Wiroth.
Goodyear Dunlop has celebrated surpassing its charity fundraising target, having raised £52,000 to build a new playground at Birmingham Children’s Hospital eight months ahead of schedule. The money has been raised through employee fund raising, company match funding and public events. Birmingham Children’s Hospital corporate fundraising manager, Fidelis Hynam said, “We have been exceptionally impressed by the fund raising efforts and commitment of Goodyear Dunlop and its employees and it is no surprise they have smashed their target so early.
“For the CAMHS patients and their families this dedicated outdoor space is a dream come true. With the average stay of a CAMHS patient being six months it is very important to have their own space where they can let off steam and importantly have fun. We cannot thank Goodyear Dunlop enough.”
Global sales of passenger car and commercial vehicle tyres may decline to 1.32 billion units in 2009 from 1.41 billion last year, said No Dock Moung, an analyst with the Singapore based International Rubber Study Group. The drop of almost 6.4 per cent would be the steepest since at least 1975, he said. And according to a Singapore based trading manager from Marubeni Corp., Japan’s largest rubber trading company, this could lead to natural rubber prices weakening by as much as 35 per cent.
New figures published by the International Rubber Study Group of Singapore suggest that the rubber price rebound of 42 per cent over the past four months is coming to an end. The Group estimates that tyre manufacturers’ sales will see a slump of 6.8 per cent in 2009, in line with the general worldwide decline in the figures of the automotive industries. 67 per cent of global output was used in the manufacture of tyres in 2008, making the industry the biggest consumer of natural rubber. Top exporter Thailand is about to increase its supply following its seasonal drop, with prices at $1,530 per tonne – 18 per cent higher than oil-based alternatives – says Bloomberg. The financial news source quotes Goodyear spokesman Keith Price’s assertion that the company would be able to convert 20 per cent of its rubber consumption to synthetic alternatives “without impacting tyre performance”. The manufacturer is keen to enhance its ability to cut costs through synthetic substitution, a sign – alongside increased supply – that natural rubber costs may be on the verge of a downturn.
Various news sources have reported on disputes between management and workers at the Thailand operations of various international companies, including Michelin and Goodyear. According to Bangkok based publication The Nation, up to five hundred workers demonstrated on a range of issues, including Goodyear (Thailand) laying off 160 workers without any advance notice and Siam Michelin cutting salaries by 13 per cent and reducing working hours.
Goodyear UK is to replace 13 sizes of its DT818 A8/B radial drive farm tyre range with a high speed version in during 2009. The new version, called DT818 HIGH SPEED, means the tyres are D-rated and can operate at speeds up to 70 km/h or at inflation pressures as low as 0.6 bar. Even at lower operating speeds and for tractors that have a top speed of 30, 40 or 50km/h these tyres can carry up to 9.5 per cent more load at same inflation versus conventional DT818 tyres. Furthermore, DT818 HIGH SPEED can carry the same loads as DT818 at lower inflation pressure thereby, elongating the footprint generating more traction and pull so that work gets completed faster and at lower cost.
The upgraded tyres will be introduced to the market in two phases. The first six sizes to change, in the first half of 2009 will be:
• 650/65R42 165D/168A8
• 650/65R38 157D/160A8
• 600/65R38 153D/156A8
• 540/65R30 143D/146A8
• 540/65R28 142D/145A8
• 480/65R28 136D/139A8
Followed by a further 7 sizes in the second half of 2009:
• 540/65R38 147D/150A8
• 600/65R34 151D/154A8
• 540/65R34 145D/148A8
• 540/65R24 140D/143A8
• 480/65R24 136D/139A8
• 440/65R28 131D/134A8
• 440/65R24 128D/131A8
Goodyear Tire & Rubber shareholders re-elected 11 members of the company’s Board of Directors at the 2009 Annual Shareholder Meeting, held on April 7. Re-elected were:
James C. Boland, retired vice chairman, Cavaliers Operating Company, LLC;
James A. Firestone, executive vice president and president, corporate operations, Xerox Corporation;
Robert J. Keegan, chairman, chief executive officer and president, Goodyear;
In his address at The Goodyear Tire & Rubber Company’s 2009 Annual Shareholder Meeting on April 7, chairman and chief executive officer Robert J. Keegan said he remains confident in Goodyear’s ability to drive performance during challenging economic conditions and emerge in a position of competitive strength. This confidence, he said, derives from Goodyear’s “game tested” leadership team, a proven track record based on strong strategies and continued new product success, as well as actions the company is taking to improve its cost structure and strengthen its cash position.
According to Michelin North America, its newly released HydroEdge tyre range delivers up to 33,000 more miles than its competitor the Goodyear Assurance ComforTred. On top of this, the company says the HydroEdge stops up to 14 feet shorter than its competitor and is the most fuel-efficient tyre in its category. All in all, says Michelin, the new tyre offers consumers even more than the previous generation while providing the confidence consumers expect from its premier large passenger car and minivan tyre.
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