Goodyear to cut European truck tire production

COLMAR-BERG, Luxembourg (Sept. 5, 2008) — Goodyear said it will cut truck tire production considerably at its European factories through the end of the year because of declining European demand for truck tires and subsequent build-up of stocks.

Most affected will be Goodyear’s plant in Colmar-Berg, where production is being scaled back starting the week of Sept. 7 to six days a week and the Christmas break extended to 10 days, Goodyear said.

Earthmover tire production at the Luxembourg plant, which employs 1,300 in tire manufacturing, will not be affected, the tire maker said.

Besides at Colmar-Berg, Goodyear makes truck tires in Europe at plants in Hanau and Wittlich, Germany; Debica, Poland; Montlucon, France; and Kranj, Slovenia. The company did not release specifics of the cutbacks at these plants nor quantify by how much production is being reduced.

“Our immediate concern lies with our employees directly affected by this necessary decision,” said John Jentgen, director of manufacturing at Luxembourg. “Along with our social partners, we have developed an action plan preventing any layoffs of Goodyear workers.

“Our staff is nonetheless required to take their remaining vacation on the production-free days before any measures of reduced working hours can be implemented.”

In its half-year financial report Goodyear reported 22-percent higher operating income in its Europe, Middle East and Africa tire unit on 15.3-percent higher sales, although it said unit sales volume was down 5 percent during the second quarter and 2.8 percent during the first half.