Goodyear boss signals major "streamlining" ahead

Akron, Ohio - Goodyear will announce major cost-saving changes to its tire manufacturing and related operations over the coming months.

The Akron tire maker is currently reviewing its cost structure to “fundamentally streamline our business,” said chairman, CEO and president Richard Kramer.

The board-led review is intended to deliver "substantial" efficiency and growth, Goodyear’s leader, adding that savings being identified “are specific, significant and actionable.” 

Europe is a particular focus of Goodyear’s current, cost-savings actions, indicated Kramer - announcing a loss-making second quarter for the US-based group (ERJ report).

“We are moving with urgency on our previously announced footprint and SAG cost structure review” in the region, he said in the 2 Aug results statement. 

As recently announced, these measures include plans to significantly reduce capacity at Goodyear’s Fulda, Germany facility (ERJ report).

The move, which involves 550 job losses, is intended to to reduce consumer-tire production costs in the region, said Goodyear.