Goodyear Tire & Rubber Co. announced Thursday that it would stop tire production at its facility in Valleyfield, Quebec and reduce its workforce from 1,000 to 200. The facility will be transitioned into a materials mixing center, with most of the transition being completed by the end of the second quarter of 2007.
“In today’s intensely competitive and increasingly global business environment, we face some very difficult choices,” said Jon Rich, president of Goodyear’s North American Tire business. “The decision to discontinue tire production at Valleyfield is one of those necessary steps to make Goodyear more competitive. This decision does not reflect on the commitment or performance of our Valleyfield associates.”
By ceasing tire production at the Valleyfield facility, Goodyear will reduce its high-cost tire manufacturing by 7 million units, bringing the total reductions under Goodyear’s four-point cost savings plan to 21 million units.
The company had set a 15 million to 20 million unit target by 2008. Under the four-point plan, the company hopes to reduce costs by $100 million to $150 million. Previously announced closings have already brought $125 million in annual savings.