January 5, 2007

Goodyear to end tire production in Quebec facility

Akron, Ohio – The Goodyear Tire & Rubber Company has announced that it will discontinue tire production at its facility in Valleyfield, Quebec. The facility is expected to transition into a materials mixing centre by the end of the second quarter of 2007, reducing the workforce of 1,000 hourly and salaried employees in tire production to approximately 200 people at the mixing centre.

The reduction in both capacity and labour in Valleyfield is related to the company’s ongoing global strategy to reduce excess high cost manufacturing capacity. Goodyear has already announced it will close tire plants in Tyler, Texas; Washington, U.K.; and Upper Hutt, New Zealand. Along with Valleyfield, the four plant closures yield a projected total of US$125 million in annual savings.

“In today’s intensely competitive and increasingly global business environment, we face some very difficult choices,” says 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.”

The elimination of tire production in Valleyfield will reduce Goodyear’s excess high cost tire manufacturing capacity by an additional seven million units. This brings total reductions under Goodyear’s four-point cost savings plan to 21 million units, compared with original targets of 15 to 20 million units by 2008.

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