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 can at last draw a deep breath, at least for the time being. The provisional results of the investigating authorities suggest that it was debris on the runway which destroyed the tyre, thus setting off the tragic chain of events which occurred on take-off.
Goodyear announced that the firm had received notice from the National Highways Transportation Safety Administration (NHTSA) to a preliminary investigation into its Load Range E light commercial tyres. This follows on from a number of complaints and issues raised as a consequence of a New Jersey court case being defended by Goodyear. The lawyers for the plaintiff claim that Goodyear has been aware of a problem with the Load Range E and has been conducting a “silent recall”, both allegations being vehemently denied by the tyre company.
The sharp drop in prices of Goodyear shares over the past three months has put extreme pressure on Goodyear’s top management. Possible reasons for the drop include increased raw material costs and apprehension among shareholders that the Dunlop acquisition could have a negative impact on results in the year 2000.
The Austrian Dunlop and Goodyear companies have been integrated into the new Goodyear Dunlop Tires Austria company, which is under 100 p.c. ownership of Goodyear Dunlop Tires Europe B.V. located in Brussels.
Tyre giants Michelin and Goodyear are to work together in the future on their run-flat systems PAX and EMT. A joint venture company has been formed, based in the Netherlands.
In a survey in the US, it seems that OE pull-through is an important factor and that the tyre recall has – according to Goodyear – stimulated interest in tyres. Before the recall, 36.7 per cent of respondents said they would choose Goodyear tyres and 21.4 per cent Firestones. During the recall, these figures changed to 55.2 per cent and 4.1 per cent respectively.
There is speculation among analysts that Michelin and Valeo could be dropped from the CAC 40. Continental has been ousted from the DAX Index and Goodyear from the Dow Jones Index recently.
Goodyear recently turned in a bullish report on its first quarter performance. The market was impressed, as the company’s shares rose 47% from its 52-week low in March. Industry analysts predict a good performance from Goodyear in the short term, with shares rising further.
At a Goodyear warehouse in North Brunswick (N. J.) members of the all-white management discriminated against black employees, The Akron Beacon Journal reports, quoting court documents and statements of two Goodyear managers. The eleven workers have been in court for two years in order to get more than 100 m US-$ compensation for discrimination. Goodyear has denied the claim.
On Tuesday 17th October, Goodyear Great Britain submitted an HR1 notice to the Dept. of Trade & Industry. This document contained a number of options for improving productivity and lowering costs, one of which was for 540 jobs to be lost at the company’s Wolverhampton plant. The notice effectively gives 90 days’ notice for management and unions to find agreement. If no agreement is forthcoming at the end of 90 days, a solution can be imposed by management. The total labour force at Goodyear Wolverhampton numbers more than 2,000. This news comes the day after Michelin announced the loss of 950 jobs at its factory in Stoke-on-Trent.
Goodyear, who stopped supplying tyres for Formula 1 last season, has announced that, from next year, it will no longer supply tyres to the Indy Racing League (IRL) and Championship Auto Racing Teams (CART) in the USA. The company will concentrate on other forms of racing, such as NASCAR. Stu Grant, general manager for global race tyres, said that the decision will be reviewed and that he would not rule out a return to IRL, CART, nor Formula 1 competition.
Michelin wants to speed up the globalisation process and has its back to the wall. Once again cost reduction programmes and job cuts are necessary. In the struggle between the “Big Three” Michelin may have been dealt the worst hand. Bridgestone’s and Goodyear/Dunlop’s pressure on the home market of the French is growing. Bridgestone with its immensely strong financial power is considered capable of becoming the clear number one in the global tyre market.
There are persistent rumours that Michelin will be entering Formula 1 from the year 2001. BMW/Williams is the most likely partner. It is expected that Michelin will make an announcement in December this year. Other rumours say that Goodyear intends to return to Formula 1 Racing as well, but research carried out by NEUE REIFENZEITUNG confirmed them to be unfounded. Very recently the Americans even anounced to pull out of the IRL and CART Series in the USA.
Karl-Friedrich Schmidt (59), previously Fulda manager with Europe-wide responsibility for Manufacturing Efficiency and Information Systems, took over as Director Global Manufacturing Efficiency of the Goodyear parent company with effect from 1st October. In this new function he reports directly to Goodyear’s world headquarters in Akron/Ohio, where he will also be based. “My principal aim is to raise the efficiency and profitability of all Goodyear production facilities worldwide”, said Schmidt. K.-F. Schmidt began his career with the group in 1983 when he joined Gummiwerke Fulda as Manager Industrial Engineering. In 1986 he moved to the personnel and welfare department with the rank of Deputy Managing Director. Four years later he became Manager Organization Effectiveness Europe for group divisions not directly product-related. He held his most recent position since 1993, during which time he was responsible for the integration of company acquisitions, among others Debica (Poland), Sava (Slovenia) and the repurchase of Goodyear South Africa.
Günter Sommer (63), Manager Original Equipment Germany, will retire at the end of the year. Jan Berckholtz (55), Director in the European management for Sales and Marketing Original Equipment Consumer Tires Europe since 1992, will take over his responsibilities and move to Cologne.
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.
