Goodyear Tire (GT) Announces Changes in Worldwide Strategy
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The Goodyear Tire & Rubber Company (NYSE: GT) will discuss its strategy to capitalize on worldwide growth in demand for its innovative high-value-added tires, further develop its strong emerging market businesses, enhance its global supply chain and increase its cost reduction efforts.
"Given the challenges that the macro-environment is presenting, particularly in North America, we are performing well in a difficult environment. We respect the magnitude of the market challenges we face," said Chairman and Chief Executive Officer Robert J. Keegan. "Our business model changes over the past five years have positioned us to manage through the current environment while continuing to drive our long-term strategies."
Goodyear will increase its cost savings target to more than $2 billion by 2009 from its prior goal of between $1.8 billion and $2 billion through intensified focus on efficiency throughout the supply chain and in back office operations.
The company also plans to build on strength in its profitable businesses in the emerging markets of Latin America, Eastern Europe and Asia.
GT sees investment of up to $500 million to increase presence in China through a relocation and expansion of its manufacturing plant in Dalian to facilitate increased production of high-value-added consumer and commercial tires for the Asia-Pacific region.
Separately, the company announces the closure of it's tire manufacturing plant in Somerton, Australia, which completes the company's targeted reduction of approximately 25 million units of high-cost capacity as part of its 4-point cost savings plan.[SM]
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Goodyear and Women
Andie on Jun 26, 2008 02:43 PMThe Goodyear Executives could have prevented this shut-down. The executives decide to break the law and pay women less than men (Lendbetter Supreme Court Case). Then when women complain and say we will boycott their tires, they decide to ignore it. In the one year since the boycott of their tires by women, Goodyear's stock went from $35.47 to $18.57, a loss of 48% in one year. Women represent 65% of new car purchases and influence 95% of new car buys, so why make women so angry to boycott their tires? What is wrong with Goodyear's management? Are they not supposed to maximize shareholder equity which includes common sense business decisions?