Goodyear’s European Union business unit plans to reduce tyre production at its two factories in Amiens, France, because their costs are not competitive.
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This will result in the loss of up to 500 jobs at the plants and follows, Goodyear said in a statement, a rejection in October 2007 by French employees to modernise and renovate the plants.
“We have communicated extensively with the trade unions, explaining the need for major changes. These changes would increase our competitiveness. Unfortunately, they have rejected the plan to improve competitiveness. Therefore, we have no choice but to reduce our costs as the plants are currently uncompetitive,” said Goodyear’s Europe, Middle East and Africa vice president of manufacturing Serge Lussier.
Goodyear said production of some tyres impacted by the move would be transferred to other, lower-cost factories in Europe and elsewhere. Some products will be eliminated.
Lussier said the plan presented in October 2007, requiring an investment of approximately $US75m in the two plants, would allow them to become more competitive, particularly through the supply of high performance tyres. This would require a new work pattern, involving four rotating crews working eight-hour shifts, including weekends. The plants would run for 350 days a year, maximising their usage.
Goodyear employs about 3,800 people in France, of which 2,700 are in the Amiens plants.
