The Goodyear Tire & Rubber Company plans to close 92 under-performing locations by the end of the year in a move to improve profits at its US retail operations.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“Following a rigorous review of operating performance and local market dynamics, these company-owned outlets are not producing acceptable returns,” said Scott Vogel, vice president of North American tyre retail operations.
“Taking this action now will allow us to focus our attention on locations with the best long-term potential,” he added. “It will help position Goodyear to be a stronger competitor.”
Vogel said the company is not yet announcing the affected outlets’ locations due to its desire to first inform about 500 full-time and 100 part-time workers as well as the owners of leased facilities.
The move will see Goodyear book after-tax charges of about US$30m, of which $15m will be recorded in the third quarter.
Apart from strategic benefits, the cuts are expected to eliminate losses related to these locations of approximately $9m a year, Goodyear said.
