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.
Goodyear has announced plans, from its headquarters at Akron, to increase the prices of all its consumer tyres by between four and five percent from the 1st December. This is as a direct result of increasing raw material charges. The increases affect the North American market and apply to Goodyear, Dunlop and Kelly and all associate brands.
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The Goodyear Eagle F1 which has been progressively rolled out around the world through 2002 is to become the first global tyre. The aim of global tyres is to produce tyre sizes for the worldwide market from single region manufacturing points. That is to say, tyres of any given size type will be manufactured in a single region and shipped globally. Currently eight North-American specific tyre sizes are manufactures in Lawton, Oklahoma, and 31 popular European sizes are manufactured in Germany. The global approach will significantly reduce manufacturing and equipment costs. The F1 is the first of many tyres that Goodyear will be offering on a global scale.
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In J.D. Power’s 2002 Global Component Branding Study, tyres and stereos came top of the list of components for which consumers prefer brand names. 68 per cent of respondents in Europe, Japan and the USA said it was important to have branded tyres, although awareness levels differed. No doubt prompted by recent recalls, more than 80 per cent of US respondents said tyre brand was important, compared to less than 20 per cent of Japanese. 17 brands were included in the study and the leading brands were Michelin, Pirelli, Goodyear and Bridgestone. Michelin’s brand was the strongest in Europe and the USA and Bridgestone was tops in Japan.
Goodyear has announced that 180 jobs will be lost at its Wolverhampton, UK, plant. The company has had to make the announcement to comply with employment legislation and the jobs could be lost as early as the beginning of next year. Uncompetitive production performance and low European demand for tyres were cited as the main reason. The job cuts will halve tyre production at Wolverhampton to 3,000 tyres a day.
The year 2000 tyre recall, with all its consequences and financial difficulties, is more or less over. Sales in North America are strong, plus the performance of the Firestone brand has been stabilised, while the Bridgestone brand managed a growth of 30%, said John Lampe, CEO of Bridgestone/Firestone Americas Holding Inc. yesterday on TV. The fact that Lampe (who has turned out to be a charismatic leader by virtue of his tough battle with his biggest customer Ford, admired by all Bridgestone/Firestone employees in America) appeared on TV this week is another blow for the morale of Goodyear people. Last week they were told by CEO Gibara and his successor from the 1st of January next year, Keegan, that the Corporation has lost market share and has been unable to produce good results on its home market so far. This is forcing the company into the next round of restructuring and cost saving measures. According to Gibara the company is no longer able to pay the health costs at the same high rates as in the past, but has to reduce these costs immediately. This is a consequence, said Gibara, of fierce competition. Employees also fear that the company might lay off thousands more associates in order to reduce costs.
Goodyear Great Britain has sold its Wolverhampton manufacturing site to Birmingham-based St. Modwen Developments Limited and entered into a 10-year, extendable lease-back agreement which will enable production to continue. Financial details were not revealed. Wolverhampton was Goodyear’s first factory outside North America, opened in 1927. Production has fallen due to lack of competitiveness and clerical jobs have been relocated to the new HQ at Tyrefort in Birmingham. The sale/lease arrangement allows production to continue and for Goodyear to release value from the 88.6 acre site.
Directors of The Goodyear Tire & Rubber Company declared a quarterly dividend of 12 cents a share. The dividend is payable December 16, to shareholders of record November 15. The payout represents an annual rate of 48 cents per share.
Good news for manufacturers and truck tyre distributors in the UK – truck tyre prices of several leading brands are set to increase. Goodyear prices have already been increased by 3.5 per cent and Bridgestone prices are set to rise by an average of 3.5 per cent also. Pirelli has confirmed that it will increase its truck tyre and retread prices by 4 per cent in November and Michelin is said to have increased new truck tyre prices by 3 per cent, Remix prices by 2.5 per cent, with no change to Encore prices. The rising cost of raw materials is cited as the main reason for the increases.
Robert J. Keegan (55), Goodyear’s president and chief operating officer, has also been appointed chief executive officer of the company, effective from January 1st. He takes over from Sam Gibara (63), who will remain as chairman for an unspecified period – in this capacity, he will advise and assist Keegan and other senior managers as they assume responsibility for day-to-day management of the company. Keegan joined Goodyear from Eastman Kodak two years ago, during which time he has, says Gibara, “gained an impressive understanding of the industry and is now fully prepared to take the company forward.” Keegan’s contract included a clause whereby he would receive compensation of several million Dollars if he was not appointed to the position of CEO by October next year.
Goodyear is planning to return bias ply race tyre manufacture to Akron after moving the work to South America five years ago. This will see the employment of 65 new workers (the move away cost 115 jobs). The good news for American employees is tainted by the news that the deal involves an agreement by the Unions to allow contracting out of some housekeeping services to lower paid workers.
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