Akron, Ohio - Citing a drive to exit low-profit businesses, Goodyear has said it is withdrawing from about a third of its private-brand tyre business in North America. The company said it will have to reduce North American tyre capacity by some 8 million units per year to compensate. Goodyear's car tyre plants in the US each makes between 8 million and 20 million units per year.
The action affects approximately 10 private brands that are currently manufactured by Goodyear and are sold by a small number of wholesale customers to tyre retailers. In 2005, this segment of the private label business represented approximately $300 million in sales and about eight million units manufactured in five North American plants, or approximately one-third of the company's private label position overall.
Over the next 12 months, said Jonathan Rich, president of Goodyear's North American Tire business, Goodyear intends to work with affected customers to help them transition to alternative Goodyear products or other sources of supply.
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Press release from Goodyear