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.
Jeanne B. Sherman (44) has been appointed as director, Global Marketing Services for the Goodyear Tire & Rubber Co., reporting to Cathryn M. Fischer, vice president and chief marketing officer. Sherman has 20 years’ experience of marketing with several well-known brands, including Wilson golf balls, Cheetos snacks and Kraft foods.
Goodyear has named Japanese component specialist, Fujikura, as the preferred supplier of sensor chips for tyre pressure monitoring systems. The chips will be used in sensors developed by Goodyear and Siemens VDO.
Michelin consolidated net sales for 2001 amounted to 15.775 bn Euro (+2.5 per cent over 2000). The operating profit reached 1.04 bn Euro (-10.5 per cent) and net profit was 314 million Euro (-28.4 per cent). With 6.6 per cent operating profit as a percentage of sales in a very difficult and competitive economic environment, Michelin easily outperformed its two biggest competitors Bridgestone and Goodyear. Bridgestone is still suffering from the consequences of the Firestone recall and Goodyear has reported losses in 2001. In a press conference in Paris Michelin boss Edouard Michelin spoke about the previous business year and Chief Financial Officer Michel Rollier gave detailed figures – also for the various divisions. It was the first time that Michelin has presented the company’s figures in such a major press conference, which was followed by two others in London and New York.
Sanjay Sivanandan (35) has been appointed by Goodyear as marketing director, Asia. He has 12 years’ experience in Europe and Asia and joins the tyre manufacturer from Mars Inc., where he was responsible for business in India. Roger A. Hagstrom becomes Sales Director, Asia Region as part of Goodyear’s global sales and marketing reorganisation.
Following a conference given by Goodyear boss Sam Gibara in New York, there was a difference of opinion among analysts. While Deutsche Bank recommended Goodyear shares now as a buy – the bank also recommends Michelin, Continental and Cooper as buys because it foresees improvements for the whole industry. On the one hand there have been price increases to the dealers while, on the other hand oil prices were 15% cheaper than last year. Analysts from UBS Warburg however see Goodyear shares as a “hold”. The turnaround plans presented by Goodyear are clear and the analysts believe that these can be achieved. On the other hand they refer to the fact that the Goodyear management has made many promises in the past that they could not fulfil. Therefore from their point of view the message is ‘wait and see’. They say that the fair price for Goodyear shares at the moment is 25 US-$; at the stock exchange the shares are worth 24.50 US-$.
Goodyear made a loss of 174 million US-$ in Q4 and announced, we feel bound to say as usual, the lay off of about 3,500 employees worldwide in order to reduce costs in the region of about 100 million US-$.
Dunlop Africa, the only tyre company listed on the Johannesburg Stock Exchange is moving closer to delisting. Its competitors being subsidiaries of global players Goodyear, Bridgestone/Firestone and Continental. The proposal is due before the Competition Commission this week and if accepted, Dunlop will delist from the JSE Securities Exchange on February 25. The group announced its plans in December, citing Dunlop’s status and the lack of liquidity in its shares as the reasons for delisting. The company believes that the transparency required by the listing specifically the need to release results every six months disadvantaged Dunlop with its competitors.
The Goodyear Tire & Rubber Co. will voluntarily replace up to 200,000 size LT245/75R16 tyres on passenger vans and ambulances, starting in March, as a preliminary investigation of the tires by the National Highway Traffic Safety Administration (NHTSA) concludes. NHTSA believes tread separations in the four-ply tyres may have led to 11 fatal accidents and numerous injuries. The program involves 16-inch Load Range E tyres made between 1996 and 2000 and encompasses 51 different lines. Goodyear says the tyres are not defective. NHTSA began investigating Load Range E tyres in November 2000. Goodyear is contacting registered tyre owners through direct mail and other methods. It will replace the tyres with same size, six-ply units. “This is a proactive tyre replacement program,” say Goodyear officials.
Goodyear has announced the closure of its factory at Marikina in the Philippines on February 1st. Overcapacity and weakening demand were cited as the reasons. The plant employed 175 people and produced 1,200 tyres a day. Goodyear Asia Region tyre manufacturing director Harold Smith said that the Philippines tyre market was highly competitive “with a flood of low-cost imports from China and South East Asia.” The company has another factory in the Philippines, at Las Pinas, and some associates from Marikina may transfer there.
Effective February 1, 2002 Goodyear Great Britain Limited and Dunlop Tyres Limited will implement an organisational structure reflecting its intentions to manage the two brands separately in the marketplace supported by various shared service functions. Among the key appointments are the following, who report to Marco Molinari, Chairman and Group Managing Director UK Operations: Bill Yates, Managing Director Dunlop Tyres Limited, Bill Hall is appointed Managing Director Goodyear Great Britain Limited and Paul Harrell, GM Retail Operations.
The new Mini Cooper and Mini Cooper S cars, now made by BMW, are due to arrive on the US market in March. The cars will be fitted with Goodyear NCT 5 EMT run-flat tyres, manufactured in Fulda, Germany. The tyre size is 195/55 VR15.
Goodyear Tire and Rubber is considering cutting sales to vehicle manufacturers due to declining profits. The company may also shift some manufacturing to sub-contractors in an attempt to improve margins. Goodyear claims that OE supply could be cut by as much as 24 per cent in three years. 30 per cent of Goodyear tyre sales are to vehicle manufacturers. Unless the tyre manufacturer can secure price increases for OE tyres production could be cut by as many as 5 million units. There have also been suggestions that Goodyear may sub-contract private label production to third parties.
John McNaught, 52, has been appointed managing director of Bridgestone/Firestone UK and will assume his role on Monday 4th February. He has worked in the UK tyre industry since 1976 when he started with Goodyear. He moved to Central Tyres, part of the Pirelli organisation, in 1985, rising to the position of operations director and then switched to National Tyre Service, part of Continental, as a regional director. Mr McNaught became the managing director of National Tyre Service in 1998 and managed the sale of the business in 2001. Since August last year he has worked as director of commercial products for Continental Tyres. Bridgestone’s marketing director, Chikuma Otsuki has been acting managing director since the retiral of Jim Wilson.
According to Goodyear, the tyres used on tomorrow’s electric vehicles will be low rollers. Low rolling resistance tyres. Tyres used on General Motors Autonomy fuel cell car were 22 inch diameter and pumped to higher pressures to ensure low rolling resistance. Ride has been improved by adopting a rounder profile sidewall on a narrower rim. The tyres are designated E-metric – for use on electric and hybrid vehicles.
Goodyear Spain has reached an agreement with Neumaticos JM Martinez which will assist the tyre distributor switch core business from distribution to manufacturing. JM Martinez is to cease distribution of Marshal and Lassa and will concentrate on selling Goodyear brands. The Spanish press speculate that this may open the door to a Goodyear takeover of JM Martinez.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
