Goodyear to Stop Consumer Tire Production in French Plant

Will explore divesting farm tire business in EMEA and Latin America

Goodyear Tire & Rubber Co.s strategy to reduce global manufacturing capacity will include discontinuing consumer tire production at a plant in Amiens, France, the company announced Tuesday. Akron, Ohio-based Goodyear said uncompetitive costs at the plant and the inability to reach an agreement with the union to modernize the facility were factors in the decision. Approximately 820 jobs will be lost with the action, which is expected to be complete by the third quarter of 2010, Goodyear said. The plant, which also produces farm tires, employs about 1,200 workers. A second plant in Amiens is not impacted by this decision. The estimated charges associated with the plan are $55 million, most of which will be recorded in the second quarter of 2009. The company also announced that it will explore divesting its farm tire business in EMEA and Latin America. It sold its North American farm tire business in 2005. The Asia Pacific farm business is not part of the potential divestiture. These moves are part of Goodyears strategy to eliminate 15 million to 25 million units of capacity over the next two years. Discontinuation of consumer tire production at the Amiens plant will eliminate about 6 million units of capacity, the company said.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish