AKRON, Ohio – Goodyear plans to phase in a restart of production in the second quarter, beginning in April with some of its commercial truck tire facilities in the U.S. and Europe.
This from the company’s preliminary Q1 financial reports, which reported a US$185-$195 million loss, as the Covid-19 has reduced demand for tires. The company’s plant in Pulandian, China, is operating with 100% of its workforce and is able to meet customer demand, Goodyear announced. It will continue ramping up production in the second quarter.
Decisions to resume production of other plants will depend on an evaluation of market demand signals, inventory and supply levels, and the company’s ability to safeguard the health of its associates, the company reported.
“During this challenging time, our top priority continues to be the health and wellbeing of our associates. We are working diligently to ensure we will be prepared to resume our manufacturing operations safely and efficiently when automotive production and replacement tire demand recovers. At the same time, we are proactively taking actions to mitigate the impact of the sharp decline in industry demand on our profitability and financial position,” said Richard J. Kramer, chairman, chief executive officer and president.
First quarter sales were $3 billion, down from $3.6 billion the year before. Tire demand shrunk by 18% in the first quarter, due to vehicle plant shutdowns and stay-at-home orders that reduced replacement demand. Most of its North American facilities remain closed.
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