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Lifer
NEW YORK -- Goodyear Tire & Rubber Co. said Friday it will close an undisclosed number of plants in various locations, part of a sweeping restructuring aimed at improving its North American tire business and saving up to $1 billion over the next three years.
The Akron, Ohio, company, one of the world's largest tire makers, did not say how many jobs would be affected. It also did not say how many plants it will close or their locations, but added that cutting high-cost capacity will be a key consideration.
Goodyear said it plans to cut high-cost manufacturing capacity between 8 percent and 12 percent, resulting in expected annual savings of $100 million to $150 million. The company also said it would increase sourcing from Asia and seek other ways to boost productivity.
The company said it would record restructuring charges between $150 million and $250 million over the next three years. The company said it is targeting total cost cuts between $750 million and $1 billion by 2008.
Goodyear added it is moving ahead with plans to sell noncore assets and reinvesting the proceeds in the company. On Tuesday, Goodyear said it is mulling the sale of its engineered products business to focus on its tire operations. The sale of its North American farm tire business is pending a union agreement.
http://www.detnews.com/2005/autosinsider/0509/23/01-325431.htm
The Akron, Ohio, company, one of the world's largest tire makers, did not say how many jobs would be affected. It also did not say how many plants it will close or their locations, but added that cutting high-cost capacity will be a key consideration.
Goodyear said it plans to cut high-cost manufacturing capacity between 8 percent and 12 percent, resulting in expected annual savings of $100 million to $150 million. The company also said it would increase sourcing from Asia and seek other ways to boost productivity.
The company said it would record restructuring charges between $150 million and $250 million over the next three years. The company said it is targeting total cost cuts between $750 million and $1 billion by 2008.
Goodyear added it is moving ahead with plans to sell noncore assets and reinvesting the proceeds in the company. On Tuesday, Goodyear said it is mulling the sale of its engineered products business to focus on its tire operations. The sale of its North American farm tire business is pending a union agreement.
http://www.detnews.com/2005/autosinsider/0509/23/01-325431.htm
