The Wall Street Journal is reporting Goodyear is looking to "optimize" operations. "The Akron, Ohio-based tire maker said that it is overhauling its portfolio and cutting costs with the goal of raising more than $2 billion in gross proceeds," reports WSJ. In addition to its chemicals segment and Dunlop, Goodyear is looking at alternatives for its Off-the-Road equipment tire business.
Goodyear stated its cost-cutting — which will include "footprint adjustments" and "plant optimization" — should drive an annual run-rate benefit of $1 billion by the end of 2025. "Actions on the top line should drive a benefit of $300 million in that time," added WSJ, noting Goodyear "has identified opportunities in North America to optimize brand and tier positioning while increasing customer and channel profitability."
Might be a great year for a golden parachute for Goodyear Chief Executive Richard Kramer who announced he intends to retire next year, but it looks like Dunlop dealers may be left a little flat following the "optimization." Stay tuned!