The current economic downturn is most notably affecting the world’s automakers, but the companies supplying the auto industry are feeling the squeeze, too. Tire maker Goodyear is one such company, with fewer orders from the auto industry forcing the Ohio-based company to shed an additional 5,000 jobs.
According to Automotive News, Goodyear is planning to cut its global staff by 5,000 employees in 2009, accounting for about 6.7 percent of the company’s worldwide work force. The cuts come amid slumping sales and dismal fourth quarter results.
During the fourth quarter of 2008, Goodyear posted a net loss of $330 – a far cry from the company’s $52 million profit during the same period a year earlier.
However, Goodyear is no stranger to job cuts. The U.S.’ largest tire maker has been restructuring its operations over the last three years, with 4,000 Goodyear employees losing their jobs in the second half of 2008 alone. Even more job cuts could be on the way as several analysts predict Goodyear will need to shutter two to three more plants. Goodyear plans to further reduce its production capacity by 15 million units, leaving the tire maker with the capacity to make just 25 million tires per year.
About 20 percent of Goodyear’s business is with OEM manufacturers, while the rest is comprised of replacement tires.
02/18, 11:46 AM
posted by:
Borat
All GoodYear tires as OEM I replaced with Michellines and never looked back. Those got to be the worse tires on planet after Firestones. There is a good reason Goodyear is in crapper. Look at their comparison on Tirerack.com. If there is anything performing worse then Goodyears, please let me know to avoid.
02/18, 12:13 PM
posted by:
johnnycanuck
Borat, on behalf of Tony Stewart, I concur.
02/18, 12:18 PM
posted by:
zfenderguy
lol. That was some kind of rant last year.
02/18, 12:33 PM
posted by:
shaver
“Because I don’t like Goodyear I am ecstatic people are getting laid off, especially those fat overpaid Americans.”, all the self-haters.
What is black, smelly and hated by Tony Stuart.
02/18, 1:10 PM
posted by:
mayer_ray_nagin
Ok, fewer miles = fewer tires, but mileage is not down 40% or anything. Yes their OEM biz is maybe slacking, but that means there should be a bit more demand at NTB and BigO and Tirerack and all that.
BTW – it is true if you compare Goodyear tires you don’t come away too impressed. Value-wise they are low, but they do have nice pretty raised white letters if that’s all you want.
02/18, 1:13 PM
posted by:
rms492
Maybe they should offer rides to the public, I’m sure many people want to go up in the blimp.
I’ll pay 100.00 for a one hour ride.
They can make lots of money that way.
02/18, 1:59 PM
posted by:
atoms
if your going to sell the blimp can I buy it goodyear?
02/18, 2:04 PM
posted by:
mayer_ray_nagin
Atoms, when Led Zepplin goes on their comeback tour they’ll be buying that blimp
02/18, 2:14 PM
posted by:
atoms
damn, I really wanted a blimp
02/18, 3:16 PM
posted by:
Borat
Blimp is aerospace division, not tire division. Goodyear aerospace is actually defense contractor and does well.
02/18, 3:53 PM
posted by:
mayer_ray_nagin
Where can I get condoms with those goodyear blimp stripes running the length of then and also the label?
02/18, 4:06 PM
posted by:
Kallen33125
wow…lol ray 4 ur last comment…
02/18, 4:09 PM
posted by:
Kallen33125
totally agree with rms492–excellent idea! : )
02/18, 5:04 PM
posted by:
olds307
hahhahahahahhah…….. Goodyear tires are far better than Michelins.
Around here everyone wants the cheapest Chinese junk they can find, like Linglongs and BCT and Aurora and ʇıɥs like that.
02/18, 9:41 PM
posted by:
Get Real
Maybe they can convert the tire plants to produce condoms.
02/18, 10:58 PM
posted by:
1c3d0g
Borat: yes, there is. It’s called Goodride and comes from China. Worst. Tire. Ever. Trust me, you do NOT want to find that out when it’s raining and the road is wet…
02/19, 10:45 AM
posted by:
Zcarsales
So the blimp pilots have to go to MetLife now?
02/19, 1:05 PM
posted by:
02WRXPSM
The worst tires on earth are the Discount Tires house brand. How they have managed to avoid a giant class-action lawsuit, I have no idea.