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Citing a deflated tire market, Goodyear says it will be easing-up on production capacity, freezing salaries and laying-off 5,000 workers worldwide – about 7 percent of its employee roster – while at the same time launching more than 50 new tire designs throughout the year.
The company has already eliminated an additional 4,000 jobs since July of 2008.
“Given lower industry demand, we are taking aggressive action, reducing tire production, cutting costs and adjusting investments to better match market conditions,” says Chairman and CEO Robert J. Keegan.
“The many positive actions we took and the results we achieved in 2008 provide a base from which we will address the market challenges we will inevitably face in 2009,” he adds.
“Collectively, these actions address the new economic realities,” says Keegan. “We will remain flexible and are prepared to take additional actions if market conditions warrant. Our goal is to ensure Goodyear is positioned for success when tire markets recover.”
The company posted a $77 million loss in 2008 versus a 2007 profit of $602 million.
Goodyear is going ahead with “an unprecedented number of new product launches” in 2009, with more than 50 new global tire introductions. Targeted to key segments, these include the new Assurance Fuel Max tire released earlier this month to the North American market; it’s been selected for factory fitment on the upcoming Chevrolet Volt electric car.
“Significant launches that showcase Goodyear’s innovative new products will be made across all geographic regions,” according to Keegan.
For more information, visit www.goodyear.com.
