Goodyear spells out financial details of European motorcycle tire consolidation plans

Akron, Ohio – Goodyear has spelled out the financial details of the group's plans to consolidate its motorcycle tire production operations in Europe.

As part of the move, the US tire maker is closing down the Cooper Tire manufacturing plant in Melksham, UK, and converting production at its Montlucon facility in France solely to motorcycle tires.

The process is estimated to incur pre-tax charges of $80-$90 million, of which some $60-$70 million will relate to personnel and other exit costs, according to a 13 Oct SEC filing.

The US tire maker has recorded $32 million of pre-tax charges in the third quarter of the year and expects to record an additional $10 million in the fourth quarter in relation to the restructuring plan.

Goodyear said the closure of the Melksham unit was intended to address “long-standing competitiveness issues” at the facility.

The proposed plan, it went on to say, will also consolidate the company’s motorcycle tire production in Europe into a single “centre of excellence”.

The move will also see the discontinuation of Cooper Tire’s European motorsport programme and the relocation of light truck tire production from the Montlucon facility to other facilities in Europe.

Goodyear said it expected to substantially complete the rationalisation plan by the end of 2023.