• Feb 18th 2009 at 6:31PM
  • 8
When car sales dip like they have over the past few months, in many cases suppliers feel the pinch even more than the automakers. That's the case at Goodyear, where production is down by 19% and losses are beginning to pile up. The tire giant lost $330 million in Q4 2008, compared to a $55M profit in Q4 2007.
To help adapt to challenging times, Goodyear is tasked with reducing its operating costs by $700 million in 2009, and part of that reduction will come from layoffs. 5,000 salaried and hourly workers will be laid off, or 6.7% of Goodyear's global workforce. The workforce reduction comes on the heels of the 4,000 jobs that were already slashed in 2008.

The automotive sales nosedive has accelerated over the past six to eight months, but Goodyear, like the domestic auto industry, has been cutting back for some time. The tire giant has reduced costs by $1.8 billion over the past three years through layoffs, production cuts, and plant closings. Goodyear plans to further cut production by 15,000 to 25,000 tires to better align production with demand.

[Source: Automotive News - Sub. Req.]

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    • 1 Second Ago
      • 6 Years Ago
      sounds like goodyear had a badyear
      • 6 Years Ago
      So this is the "ripple effect" we keep hearing about.

      I am not a big fan of the recent legislation, but as long as we are spending the money, I hope it helps these honest/hardworking people!

      I wish the best of luck to ALL those that have lost their employment!
        • 6 Years Ago
        @CarbonBlack: When you wrote honest and hardworking people, do you mean the crooks on Wall Street, or the crooks in the unions?
      • 6 Years Ago
      Goodyear may have has a bad quarter but most of the other tire companies have had as bad or worse.

      As for the OE tires. It is not just Goodyears OE tires that suck but most OE tires that suck.

      Auto companied don't want to pay anything for OE tires so tire companies may little to nothing on them. Goodyear in the last few years has been finishing contracts and pullng out of the OE market.

      Note the best tires you can get seldom are OE weather it is Goodyear, Michelin or Bridgestone.

      The RS-A, Integrity and LS will all vanish soon as Goodyear is dropping them. But MFG will not buy Assurance tires as they are quality and much more costly as they are great tires. You get what you pay for with a tire.

      Out side some high end cars most all OE tires are crap no matter the maker.

      Goodyear will intro near 40 new tires in the next year and almost all are directed at the replacment market.

      Goodyear slipped under their last CEO but their present one Robert Keegan has put them back where they should be and they are in a good position to ride this out vs some of the the other competitors.

      Might want to check the stuggles of Michelin of late with slipping profits and Quality.

      A Han Kook OE tire speak volume of how much MFG want to pay for a tire.
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